H. Rept. 114-347 - NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015114th Congress (2015-2016)
Committee Report
| Report Type: | House Report |
|---|---|
| Accompanies: | H.R.8 |
| Committees: |
H. Rept. 114-347 - 114th Congress (2015-2016)
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House Report 114-347 - NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015
[House Report 114-347]
[From the U.S. Government Publishing Office]
114th Congress } {Rept. 114-347
1st Session } HOUSE OF REPRESENTATIVES { Part 1
_______________________________________________________________________
NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015
__________
R E P O R T
of the
COMMITTEE ON ENERGY AND COMMERCE
TOGETHER WITH
DISSENTING VIEWS
[TO ACCOMPANY H.R. 8]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
November 19, 2015.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
__________
U.S. GOVERNMENT PUBLISHING OFFICE
97-649 WASHINGTON : 2015
114th Congress } { Rept. 114-347
HOUSE OF REPRESENTATIVES
1st Session } { Part 1
======================================================================
NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE ACT OF 2015
_______
November 19, 2015.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Upton, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 8]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 8) to modernize energy infrastructure, build a
21st century energy and manufacturing workforce, bolster
America's energy security and diplomacy, and promote energy
efficiency and government accountability, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
CONTENTS
Page
Purpose and Summary.............................................. 61
Background and Need for Legislation.............................. 61
Hearings......................................................... 66
Committee Consideration.......................................... 68
Committee Votes.................................................. 69
Committee Oversight Findings..................................... 87
Statement of General Performance Goals and Objectives............ 87
New Budget Authority, Entitlement Authority, and Tax Expenditures 87
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 87
Committee Cost Estimate.......................................... 87
Congressional Budget Office Estimate............................. 87
Federal Mandates Statement....................................... 101
Duplication of Federal Programs.................................. 101
Disclosure of Directed Rule Makings.............................. 101
Advisory Committee Statement..................................... 101
Applicability to Legislative Branch.............................. 101
Section-by-Section Analysis of the Legislation................... 101
Changes in Existing Law Made by the Bill, as Reported............ 115
Minority, Additional, or Dissenting Views........................ 317
The amendment is 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 ``North American
Energy Security and Infrastructure Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE
Subtitle A--Energy Delivery, Reliability, and Security
Sec. 1101. FERC process coordination.
Sec. 1102. Resolving environmental and grid reliability conflicts.
Sec. 1103. Emergency preparedness for energy supply disruptions.
Sec. 1104. Critical electric infrastructure security.
Sec. 1105. Strategic Transformer Reserve.
Sec. 1106. Cyber Sense.
Sec. 1107. State coverage and consideration of PURPA standards for
electric utilities.
Sec. 1108. Reliability analysis for certain rules that affect electric
generating facilities.
Sec. 1109. Carbon capture, utilization, and sequestration technologies.
Sec. 1110. Reliability and performance assurance in Regional
Transmission Organizations.
Subtitle B--Energy Security and Infrastructure Modernization
Sec. 1201. Energy Security and Infrastructure Modernization Fund.
Subtitle C--Hydropower Regulatory Modernization
Sec. 1301. Hydroelectric production and efficiency incentives.
Sec. 1302. Protection of private property rights in hydropower
licensing.
Sec. 1303. Extension of time for FERC project involving W. Kerr Scott
Dam.
Sec. 1304. Hydropower licensing and process improvements.
Sec. 1305. Judicial review of delayed Federal authorizations.
Sec. 1306. Licensing study improvements.
Sec. 1307. Closed-loop pumped storage projects.
Sec. 1308. License amendment improvements.
Sec. 1309. Promoting hydropower development at existing nonpowered
dams.
TITLE II--21ST CENTURY WORKFORCE
Sec. 2001. Energy and manufacturing workforce development.
TITLE III--ENERGY SECURITY AND DIPLOMACY
Sec. 3001. Sense of Congress.
Sec. 3002. Energy security valuation.
Sec. 3003. North American energy security plan.
Sec. 3004. Collective energy security.
Sec. 3005. Strategic Petroleum Reserve mission readiness plan.
Sec. 3006. Authorization to export natural gas.
TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY
Subtitle A--Energy Efficiency
Chapter 1--Federal Agency Energy Efficiency
Sec. 4111. Energy-efficient and energy-saving information technologies.
Sec. 4112. Energy efficient data centers.
Sec. 4113. Report on energy and water savings potential from thermal
insulation.
Sec. 4114. Federal purchase requirement.
Sec. 4115. Energy performance requirement for Federal buildings.
Sec. 4116. Federal building energy efficiency performance standards;
certification system and level for Federal buildings.
Sec. 4117. Operation of battery recharging stations in parking areas
used by Federal employees.
Chapter 2--Energy Efficient Technology and Manufacturing
Sec. 4121. Inclusion of Smart Grid capability on Energy Guide labels.
Sec. 4122. Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products.
Sec. 4123. Facilitating consensus furnace standards.
Sec. 4124. Future of Industry program.
Sec. 4125. No warranty for certain certified Energy Star products.
Sec. 4126. Clarification to effective date for regional standards.
Sec. 4127. Internet of Things report.
Chapter 3--Energy Performance Contracting
Sec. 4131. Use of energy and water efficiency measures in Federal
buildings.
Chapter 4--School Buildings
Sec. 4141. Coordination of energy retrofitting assistance for schools.
Chapter 5--Building Energy Codes
Sec. 4151. Greater energy efficiency in building codes.
Sec. 4152. Voluntary nature of building asset rating program.
Chapter 6--EPCA Technical Corrections and Clarifications
Sec. 4161. Modifying product definitions.
Sec. 4162. Clarifying rulemaking procedures.
Chapter 7--Energy and Water Efficiency
Sec. 4171. Smart energy and water efficiency pilot program.
Sec. 4172. WaterSense.
Subtitle B--Accountability
Chapter 1--Market Manipulation, Enforcement, and Compliance
Sec. 4211. FERC Office of Compliance Assistance and Public
Participation.
Chapter 2--Market Reforms
Sec. 4221. GAO study on wholesale electricity markets.
Sec. 4222. Clarification of facility merger authorization.
Chapter 3--Code Maintenance
Sec. 4231. Repeal of off-highway motor vehicles study.
Sec. 4232. Repeal of methanol study.
Sec. 4233. Repeal of residential energy efficiency standards study.
Sec. 4234. Repeal of weatherization study.
Sec. 4235. Repeal of report to Congress.
Sec. 4236. Repeal of report by General Services Administration.
Sec. 4237. Repeal of intergovernmental energy management planning and
coordination workshops.
Sec. 4238. Repeal of Inspector General audit survey and President's
Council on Integrity and Efficiency report to Congress.
Sec. 4239. Repeal of procurement and identification of energy efficient
products program.
Sec. 4240. Repeal of national action plan for demand response.
Sec. 4241. Repeal of national coal policy study.
Sec. 4242. Repeal of study on compliance problem of small electric
utility systems.
Sec. 4243. Repeal of study of socioeconomic impacts of increased coal
production and other energy development.
Sec. 4244. Repeal of study of the use of petroleum and natural gas in
combustors.
Sec. 4245. Repeal of submission of reports.
Sec. 4246. Repeal of electric utility conservation plan.
Sec. 4247. Technical amendment to Powerplant and Industrial Fuel Use
Act of 1978.
Sec. 4248. Emergency energy conservation repeals.
Sec. 4249. Repeal of State utility regulatory assistance.
Sec. 4250. Repeal of survey of energy saving potential.
Sec. 4251. Repeal of photovoltaic energy program.
Sec. 4252. Repeal of energy auditor training and certification.
Chapter 4--Use of Existing Funds
Sec. 4261. Use of existing funds.
TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE
Subtitle A--Energy Delivery, Reliability, and Security
SEC. 1101. FERC PROCESS COORDINATION.
Section 15 of the Natural Gas Act (15 U.S.C. 717n) is amended--
(1) by amending subsection (b)(2) to read as follows:
``(2) Other agencies.--
``(A) In general.--Each Federal and State agency
considering an aspect of an application for Federal
authorization shall cooperate with the Commission and
comply with the deadlines established by the
Commission.
``(B) Identification.--The Commission shall identify,
as early as practicable after it is notified by a
prospective applicant of a potential project requiring
Commission authorization, any Federal or State agency,
local government, or Indian tribe that may consider an
aspect of an application for that Federal
authorization.
``(C) Notification.--
``(i) In general.--The Commission shall
notify any agency identified under subparagraph
(B) of the opportunity to cooperate or
participate in the review process.
``(ii) Deadline.--A notification issued under
clause (i) shall establish a deadline by which
a response to the notification shall be
submitted, which may be extended by the
Commission for good cause.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``and'' at the end of
subparagraph (A);
(ii) by redesignating subparagraph (B) as
subparagraph (C); and
(iii) by inserting after subparagraph (A) the
following new subparagraph:
``(B) set deadlines for all such Federal
authorizations; and'';
(B) by striking paragraph (2); and
(C) by adding at the end the following new
paragraphs:
``(2) Deadline for federal authorizations.--A final decision
on a Federal authorization is due no later than 90 days after
the Commission issues its final environmental document, unless
a schedule is otherwise established by Federal law.
``(3) Concurrent reviews.--Each Federal and State agency
considering an aspect of an application for a Federal
authorization shall--
``(A) carry out the obligations of that agency under
applicable law concurrently, and in conjunction, with
the review required by the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.), unless
doing so would impair the ability of the agency to
conduct needed analysis or otherwise carry out those
obligations;
``(B) formulate and implement administrative, policy,
and procedural mechanisms to enable the agency to
ensure completion of required Federal authorizations no
later than 90 days after the Commission issues its
final environmental document; and
``(C) transmit to the Commission a statement--
``(i) acknowledging receipt of the schedule
established under paragraph (1); and
``(ii) setting forth the plan formulated
under subparagraph (B) of this paragraph.
``(4) Issue identification and resolution.--
``(A) Identification.--Federal and State agencies
that may consider an aspect of an application for
Federal authorization shall identify, as early as
possible, any issues of concern that may delay or
prevent an agency from working with the Commission to
resolve such issues and granting such authorization.
``(B) Issue resolution.--The Commission may forward
any issue of concern identified under subparagraph (A)
to the heads of the relevant agencies (including, in
the case of a failure by the State agency, the Federal
agency overseeing the delegated authority) for
resolution.
``(5) Failure to meet schedule.--If a Federal or State agency
does not complete a proceeding for an approval that is required
for a Federal authorization in accordance with the schedule
established by the Commission under paragraph (1)--
``(A) the applicant may pursue remedies under section
19(d); and
``(B) the head of the relevant Federal agency
(including, in the case of a failure by a State agency,
the Federal agency overseeing the delegated authority)
shall notify Congress and the Commission of such
failure and set forth a recommended implementation plan
to ensure completion of the proceeding for an
approval.'';
(3) by redesignating subsections (d) through (f) as
subsections (g) through (i), respectively; and
(4) by inserting after subsection (c) the following new
subsections:
``(d) Remote Surveys.--If a Federal or State agency considering an
aspect of an application for Federal authorization requires the
applicant to submit environmental data, the agency shall consider any
such data gathered by aerial or other remote means that the applicant
submits. The agency may grant a conditional approval for Federal
authorization, conditioned on the verification of such data by
subsequent onsite inspection.
``(e) Application Processing.--The Commission, and Federal and State
agencies, may allow an applicant seeking Federal authorization to fund
a third-party contractor to assist in reviewing the application.
``(f) Accountability, Transparency, Efficiency.--For applications
requiring multiple Federal authorizations, the Commission, with input
from any Federal or State agency considering an aspect of an
application, shall track and make available to the public on the
Commission's website information related to the actions required to
complete permitting, reviews, and other actions required. Such
information shall include the following:
``(1) The schedule established by the Commission under
subsection (c)(1).
``(2) A list of all the actions required by each applicable
agency to complete permitting, reviews, and other actions
necessary to obtain a final decision on the Federal
authorization.
``(3) The expected completion date for each such action.
``(4) A point of contact at the agency accountable for each
such action.
``(5) In the event that an action is still pending as of the
expected date of completion, a brief explanation of the reasons
for the delay.''.
SEC. 1102. RESOLVING ENVIRONMENTAL AND GRID RELIABILITY CONFLICTS.
(a) Compliance With or Violation of Environmental Laws While Under
Emergency Order.--Section 202(c) of the Federal Power Act (16 U.S.C.
824a(c)) is amended--
(1) by inserting ``(1)'' after ``(c)''; and
(2) by adding at the end the following:
``(2) With respect to an order issued under this subsection that may
result in a conflict with a requirement of any Federal, State, or local
environmental law or regulation, the Commission shall ensure that such
order requires generation, delivery, interchange, or transmission of
electric energy only during hours necessary to meet the emergency and
serve the public interest, and, to the maximum extent practicable, is
consistent with any applicable Federal, State, or local environmental
law or regulation and minimizes any adverse environmental impacts.
``(3) To the extent any omission or action taken by a party, that is
necessary to comply with an order issued under this subsection,
including any omission or action taken to voluntarily comply with such
order, results in noncompliance with, or causes such party to not
comply with, any Federal, State, or local environmental law or
regulation, such omission or action shall not be considered a violation
of such environmental law or regulation, or subject such party to any
requirement, civil or criminal liability, or a citizen suit under such
environmental law or regulation.
``(4)(A) An order issued under this subsection that may result in a
conflict with a requirement of any Federal, State, or local
environmental law or regulation shall expire not later than 90 days
after it is issued. The Commission may renew or reissue such order
pursuant to paragraphs (1) and (2) for subsequent periods, not to
exceed 90 days for each period, as the Commission determines necessary
to meet the emergency and serve the public interest.
``(B) In renewing or reissuing an order under subparagraph (A), the
Commission shall consult with the primary Federal agency with expertise
in the environmental interest protected by such law or regulation, and
shall include in any such renewed or reissued order such conditions as
such Federal agency determines necessary to minimize any adverse
environmental impacts to the extent practicable. The conditions, if
any, submitted by such Federal agency shall be made available to the
public. The Commission may exclude such a condition from the renewed or
reissued order if it determines that such condition would prevent the
order from adequately addressing the emergency necessitating such order
and provides in the order, or otherwise makes publicly available, an
explanation of such determination.
``(5) If an order issued under this subsection is subsequently
stayed, modified, or set aside by a court pursuant to section 313 or
any other provision of law, any omission or action previously taken by
a party that was necessary to comply with the order while the order was
in effect, including any omission or action taken to voluntarily comply
with the order, shall remain subject to paragraph (3).''.
(b) Temporary Connection or Construction by Municipalities.--Section
202(d) of the Federal Power Act (16 U.S.C. 824a(d)) is amended by
inserting ``or municipality'' before ``engaged in the transmission or
sale of electric energy''.
SEC. 1103. EMERGENCY PREPAREDNESS FOR ENERGY SUPPLY DISRUPTIONS.
(a) Finding.--Congress finds that recent natural disasters have
underscored the importance of having resilient oil and natural gas
infrastructure and effective ways for industry and government to
communicate to address energy supply disruptions.
(b) Authorization for Activities To Enhance Emergency Preparedness
for Natural Disasters.--The Secretary of Energy shall develop and adopt
procedures to--
(1) improve communication and coordination between the
Department of Energy's energy response team, Federal partners,
and industry;
(2) leverage the Energy Information Administration's subject
matter expertise within the Department's energy response team
to improve supply chain situation assessments;
(3) establish company liaisons and direct communication with
the Department's energy response team to improve situation
assessments;
(4) streamline and enhance processes for obtaining temporary
regulatory relief to speed up emergency response and recovery;
(5) facilitate and increase engagement among States, the oil
and natural gas industry, and the Department in developing
State and local energy assurance plans;
(6) establish routine education and training programs for key
government emergency response positions with the Department and
States; and
(7) involve States and the oil and natural gas industry in
comprehensive drill and exercise programs.
(c) Cooperation.--The activities carried out under subsection (b)
shall include collaborative efforts with State and local government
officials and the private sector.
(d) Report.--Not later than 180 days after the date of enactment of
this Act, the Secretary of Energy shall submit to Congress a report
describing the effectiveness of the activities authorized under this
section.
SEC. 1104. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.
(a) Critical Electric Infrastructure Security.--Part II of the
Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding after
section 215 the following new section:
``SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.
``(a) Definitions.--For purposes of this section:
``(1) Bulk-power system; electric reliability organization;
regional entity.--The terms `bulk-power system', `Electric
Reliability Organization', and `regional entity' have the
meanings given such terms in paragraphs (1), (2), and (7) of
section 215(a), respectively.
``(2) Critical electric infrastructure.--The term `critical
electric infrastructure' means a system or asset of the bulk-
power system, whether physical or virtual, the incapacity or
destruction of which would negatively affect national security,
economic security, public health or safety, or any combination
of such matters.
``(3) Critical electric infrastructure information.--The term
`critical electric infrastructure information' means
information related to critical electric infrastructure, or
proposed critical electrical infrastructure, generated by or
provided to the Commission or other Federal agency, other than
classified national security information, that is designated as
critical electric infrastructure information by the Commission
under subsection (d)(2). Such term includes information that
qualifies as critical energy infrastructure information under
the Commission's regulations.
``(4) Defense critical electric infrastructure.--The term
`defense critical electric infrastructure' means any electric
infrastructure located in the United States (including the
territories) that serves a facility designated by the Secretary
pursuant to subsection (c), but is not owned or operated by the
owner or operator of such facility.
``(5) Electromagnetic pulse.--The term `electromagnetic
pulse' means 1 or more pulses of electromagnetic energy emitted
by a device capable of disabling or disrupting operation of, or
destroying, electronic devices or communications networks,
including hardware, software, and data, by means of such a
pulse.
``(6) Geomagnetic storm.--The term `geomagnetic storm' means
a temporary disturbance of the Earth's magnetic field resulting
from solar activity.
``(7) Grid security emergency.--The term `grid security
emergency' means the occurrence or imminent danger of--
``(A)(i) a malicious act using electronic
communication or an electromagnetic pulse, or a
geomagnetic storm event, that could disrupt the
operation of those electronic devices or communications
networks, including hardware, software, and data, that
are essential to the reliability of critical electric
infrastructure or of defense critical electric
infrastructure; and
``(ii) disruption of the operation of such devices or
networks, with significant adverse effects on the
reliability of critical electric infrastructure or of
defense critical electric infrastructure, as a result
of such act or event; or
``(B)(i) a direct physical attack on critical
electric infrastructure or on defense critical electric
infrastructure; and
``(ii) significant adverse effects on the reliability
of critical electric infrastructure or of defense
critical electric infrastructure as a result of such
physical attack.
``(8) Secretary.--The term `Secretary' means the Secretary of
Energy.
``(b) Authority To Address Grid Security Emergency.--
``(1) Authority.--Whenever the President issues and provides
to the Secretary a written directive or determination
identifying a grid security emergency, the Secretary may, with
or without notice, hearing, or report, issue such orders for
emergency measures as are necessary in the judgment of the
Secretary to protect or restore the reliability of critical
electric infrastructure or of defense critical electric
infrastructure during such emergency. As soon as practicable
but not later than 180 days after the date of enactment of this
section, the Secretary shall, after notice and opportunity for
comment, establish rules of procedure that ensure that such
authority can be exercised expeditiously.
``(2) Notification of congress.--Whenever the President
issues and provides to the Secretary a written directive or
determination under paragraph (1), the President shall promptly
notify congressional committees of relevant jurisdiction,
including the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate, of the contents of, and justification
for, such directive or determination.
``(3) Consultation.--Before issuing an order for emergency
measures under paragraph (1), the Secretary shall, to the
extent practicable in light of the nature of the grid security
emergency and the urgency of the need for action, consult with
appropriate governmental authorities in Canada and Mexico,
entities described in paragraph (4), the Electricity Sub-sector
Coordinating Council, the Commission, and other appropriate
Federal agencies regarding implementation of such emergency
measures.
``(4) Application.--An order for emergency measures under
this subsection may apply to--
``(A) the Electric Reliability Organization;
``(B) a regional entity; or
``(C) any owner, user, or operator of critical
electric infrastructure or of defense critical electric
infrastructure within the United States.
``(5) Expiration and reissuance.--
``(A) In general.--Except as provided in subparagraph
(B), an order for emergency measures issued under
paragraph (1) shall expire no later than 15 days after
its issuance.
``(B) Extensions.--The Secretary may reissue an order
for emergency measures issued under paragraph (1) for
subsequent periods, not to exceed 15 days for each such
period, provided that the President, for each such
period, issues and provides to the Secretary a written
directive or determination that the grid security
emergency identified under paragraph (1) continues to
exist or that the emergency measure continues to be
required.
``(6) Cost recovery.--
``(A) Critical electric infrastructure.--If the
Commission determines that owners, operators, or users
of critical electric infrastructure have incurred
substantial costs to comply with an order for emergency
measures issued under this subsection and that such
costs were prudently incurred and cannot reasonably be
recovered through regulated rates or market prices for
the electric energy or services sold by such owners,
operators, or users, the Commission shall, consistent
with the requirements of section 205, after notice and
an opportunity for comment, establish a mechanism that
permits such owners, operators, or users to recover
such costs.
``(B) Defense critical electric infrastructure.--To
the extent the owner or operator of defense critical
electric infrastructure is required to take emergency
measures pursuant to an order issued under this
subsection, the owners or operators of a critical
defense facility or facilities designated by the
Secretary pursuant to subsection (c) that rely upon
such infrastructure shall bear the full incremental
costs of the measures.
``(7) Temporary access to classified information.--The
Secretary, and other appropriate Federal agencies, shall, to
the extent practicable and consistent with their obligations to
protect classified information, provide temporary access to
classified information related to a grid security emergency for
which emergency measures are issued under paragraph (1) to key
personnel of any entity subject to such emergency measures to
enable optimum communication between the entity and the
Secretary and other appropriate Federal agencies regarding the
grid security emergency.
``(c) Designation of Critical Defense Facilities.--Not later than 180
days after the date of enactment of this section, the Secretary, in
consultation with other appropriate Federal agencies and appropriate
owners, users, or operators of infrastructure that may be defense
critical electric infrastructure, shall identify and designate
facilities located in the United States (including the territories)
that are--
``(1) critical to the defense of the United States; and
``(2) vulnerable to a disruption of the supply of electric
energy provided to such facility by an external provider.
The Secretary may, in consultation with appropriate Federal agencies
and appropriate owners, users, or operators of defense critical
electric infrastructure, periodically revise the list of designated
facilities as necessary.
``(d) Protection and Sharing of Critical Electric Infrastructure
Information.--
``(1) Protection of critical electric infrastructure
information.--Critical electric infrastructure information--
``(A) shall be exempt from disclosure under section
552(b)(3) of title 5, United States Code; and
``(B) shall not be made available by any Federal,
State, political subdivision or tribal authority
pursuant to any Federal, State, political subdivision
or tribal law requiring public disclosure of
information or records.
``(2) Designation and sharing of critical electric
infrastructure information.--Not later than one year after the
date of enactment of this section, the Commission, in
consultation with the Secretary of Energy, shall promulgate
such regulations and issue such orders as necessary to--
``(A) designate information as critical electric
infrastructure information;
``(B) prohibit the unauthorized disclosure of
critical electric infrastructure information;
``(C) ensure there are appropriate sanctions in place
for Commissioners, officers, employees, or agents of
the Commission who knowingly and willfully disclose
critical electric infrastructure information in a
manner that is not authorized under this section; and
``(D) taking into account standards of the Electric
Reliability Organization, facilitate voluntary sharing
of critical electric infrastructure information with,
between, and by--
``(i) Federal, State, political subdivision,
and tribal authorities;
``(ii) the Electric Reliability Organization;
``(iii) regional entities;
``(iv) information sharing and analysis
centers established pursuant to Presidential
Decision Directive 63;
``(v) owners, operators, and users of
critical electric infrastructure in the United
States; and
``(vi) other entities determined appropriate
by the Commission.
``(3) Considerations.--In promulgating regulations and
issuing orders under paragraph (2), the Commission shall take
into consideration the role of State commissions in reviewing
the prudence and cost of investments, determining the rates and
terms of conditions for electric services, and ensuring the
safety and reliability of the bulk-power system and
distribution facilities within their respective jurisdictions.
``(4) Protocols.--The Commission shall, in consultation with
Canadian and Mexican authorities, develop protocols for the
voluntary sharing of critical electric infrastructure
information with Canadian and Mexican authorities and owners,
operators, and users of the bulk-power system outside the
United States.
``(5) No required sharing of information.--Nothing in this
section shall require a person or entity in possession of
critical electric infrastructure information to share such
information with Federal, State, political subdivision, or
tribal authorities, or any other person or entity.
``(6) Submission of information to congress.--Nothing in this
section shall permit or authorize the withholding of
information from Congress, any committee or subcommittee
thereof, or the Comptroller General.
``(7) Disclosure of nonprotected information.--In
implementing this section, the Commission shall protect from
disclosure only the minimum amount of information necessary to
protect the security and reliability of the bulk-power system
and distribution facilities. The Commission shall segregate
critical electric infrastructure information within documents
and electronic communications, wherever feasible, to facilitate
disclosure of information that is not designated as critical
electric infrastructure information.
``(8) Duration of designation.--Information may not be
designated as critical electric infrastructure information for
longer than 5 years, unless specifically re-designated by the
Commission.
``(9) Removal of designation.--The Commission shall remove
the designation of critical electric infrastructure
information, in whole or in part, from a document or electronic
communication if the Commission determines that the
unauthorized disclosure of such information could no longer be
used to impair the security or reliability of the bulk-power
system or distribution facilities.
``(10) Judicial review of designations.--Notwithstanding
section 313(b), any determination by the Commission concerning
the designation of critical electric infrastructure information
under this subsection shall be subject to review under chapter
7 of title 5, United States Code, except that such review shall
be brought in the district court of the United States in the
district in which the complainant resides, or has his principal
place of business, or in the District of Columbia. In such a
case the court shall examine in camera the contents of
documents or electronic communications that are the subject of
the determination under review to determine whether such
documents or any part thereof were improperly designated or not
designated as critical electric infrastructure information.
``(e) Security Clearances.--The Secretary shall facilitate and, to
the extent practicable, expedite the acquisition of adequate security
clearances by key personnel of any entity subject to the requirements
of this section, to enable optimum communication with Federal agencies
regarding threats to the security of the critical electric
infrastructure. The Secretary, the Commission, and other appropriate
Federal agencies shall, to the extent practicable and consistent with
their obligations to protect classified and critical electric
infrastructure information, share timely actionable information
regarding grid security with appropriate key personnel of owners,
operators, and users of the critical electric infrastructure.
``(f) Clarifications of Liability.--
``(1) Compliance with or violation of this act.--Except as
provided in paragraph (4), to the extent any action or omission
taken by an entity that is necessary to comply with an order
for emergency measures issued under subsection (b)(1),
including any action or omission taken to voluntarily comply
with such order, results in noncompliance with, or causes such
entity not to comply with any rule, order, regulation, or
provision of this Act, including any reliability standard
approved by the Commission pursuant to section 215, such action
or omission shall not be considered a violation of such rule,
order, regulation, or provision.
``(2) Relation to section 202(c).--Except as provided in
paragraph (4), an action or omission taken by an owner,
operator, or user of critical electric infrastructure or of
defense critical electric infrastructure to comply with an
order for emergency measures issued under subsection (b)(1)
shall be treated as an action or omission taken to comply with
an order issued under section 202(c) for purposes of such
section.
``(3) Sharing or receipt of information.--No cause of action
shall lie or be maintained in any Federal or State court for
the sharing or receipt of information under, and that is
conducted in accordance with, subsection (d).
``(4) Rule of construction.--Nothing in this subsection shall
be construed to require dismissal of a cause of action against
an entity that, in the course of complying with an order for
emergency measures issued under subsection (b)(1) by taking an
action or omission for which they would be liable but for
paragraph (1) or (2), takes such action or omission in a
grossly negligent manner.''.
(b) Conforming Amendments.--
(1) Jurisdiction.--Section 201(b)(2) of the Federal Power Act
(16 U.S.C. 824(b)(2)) is amended by inserting ``215A,'' after
``215,'' each place it appears.
(2) Public utility.--Section 201(e) of the Federal Power Act
(16 U.S.C. 824(e)) is amended by inserting ``215A,'' after
``215,''.
SEC. 1105. STRATEGIC TRANSFORMER RESERVE.
(a) Finding.--Congress finds that the storage of strategically
located spare large power transformers and emergency mobile substations
will reduce the vulnerability of the United States to multiple risks
facing electric grid reliability, including physical attack, cyber
attack, electromagnetic pulse, geomagnetic disturbances, severe
weather, and seismic events.
(b) Definitions.--In this section:
(1) Bulk-power system.--The term ``bulk-power system'' has
the meaning given such term in section 215(a) of the Federal
Power Act (16 U.S.C. 824o(a)).
(2) Critically damaged large power transformer.--The term
``critically damaged large power transformer'' means a large
power transformer that--
(A) has sustained extensive damage such that--
(i) repair or refurbishment is not
economically viable; or
(ii) the extensive time to repair or
refurbish the large power transformer would
create an extended period of instability in the
bulk-power system; and
(B) prior to sustaining such damage, was part of the
bulk-power system.
(3) Critical electric infrastructure.--The term ``critical
electric infrastructure'' has the meaning given that term in
section 215A of the Federal Power Act.
(4) Electric reliability organization.--The term ``Electric
Reliability Organization'' has the meaning given such term in
section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
(5) Emergency mobile substation.--The term ``emergency mobile
substation'' means a mobile substation or mobile transformer
that is--
(A) assembled and permanently mounted on a trailer
that is capable of highway travel and meets relevant
Department of Transportation regulations; and
(B) intended for express deployment and capable of
being rapidly placed into service.
(6) Large power transformer.--The term ``large power
transformer'' means a power transformer with a maximum
nameplate rating of 100 megavolt-amperes or higher, including
related critical equipment, that is, or is intended to be, a
part of the bulk-power system.
(7) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(8) Spare large power transformer.--The term ``spare large
power transformer'' means a large power transformer that is
stored within the Strategic Transformer Reserve to be available
to temporarily replace a critically damaged large power
transformer.
(c) Strategic Transformer Reserve Plan.--
(1) Plan.--Not later than one year after the date of
enactment of this Act, the Secretary, acting through the Office
of Electricity Delivery and Energy Reliability, shall, in
consultation with the Federal Energy Regulatory Commission, the
Electricity Sub-sector Coordinating Council, the Electric
Reliability Organization, and owners and operators of critical
electric infrastructure and defense and military installations,
prepare and submit to Congress a plan to establish a Strategic
Transformer Reserve for the storage, in strategically located
facilities, of spare large power transformers and emergency
mobile substations in sufficient numbers to temporarily replace
critically damaged large power transformers and substations
that are critical electric infrastructure or serve defense and
military installations.
(2) Inclusions.--The Strategic Transformer Reserve plan shall
include a description of--
(A) the appropriate number and type of spare large
power transformers necessary to provide or restore
sufficient resiliency to the bulk-power system,
critical electric infrastructure, and defense and
military installations to mitigate significant impacts
to the electric grid resulting from--
(i) physical attack;
(ii) cyber attack;
(iii) electromagnetic pulse attack;
(iv) geomagnetic disturbances;
(v) severe weather; or
(vi) seismic events;
(B) other critical electric grid equipment for which
an inventory of spare equipment, including emergency
mobile substations, is necessary to provide or restore
sufficient resiliency to the bulk-power system,
critical electric infrastructure, and defense and
military installations;
(C) the degree to which utility sector actions or
initiatives, including individual utility ownership of
spare equipment, joint ownership of spare equipment
inventory, sharing agreements, or other spare equipment
reserves or arrangements, satisfy the needs identified
under subparagraphs (A) and (B);
(D) the potential locations for, and feasibility and
appropriate number of, strategic storage locations for
reserve equipment, including consideration of--
(i) the physical security of such locations;
(ii) the protection of the confidentiality of
such locations; and
(iii) the proximity of such locations to
sites of potentially critically damaged large
power transformers and substations that are
critical electric infrastructure or serve
defense and military installations, so as to
enable efficient delivery of equipment to such
sites;
(E) the necessary degree of flexibility of spare
large power transformers to be included in the
Strategic Transformer Reserve to conform to different
substation configurations, including consideration of
transformer--
(i) power and voltage rating for each
winding;
(ii) overload requirements;
(iii) impedance between windings;
(iv) configuration of windings; and
(v) tap requirements;
(F) an estimate of the direct cost of the Strategic
Transformer Reserve, as proposed, including--
(i) the cost of storage facilities;
(ii) the cost of the equipment; and
(iii) management, maintenance, and operation
costs;
(G) the funding options available to establish,
stock, manage, and maintain the Strategic Transformer
Reserve, including consideration of fees on owners and
operators of bulk-power system facilities, critical
electric infrastructure, and defense and military
installations relying on the Strategic Transformer
Reserve, use of Federal appropriations, and public-
private cost-sharing options;
(H) the ease and speed of transportation,
installation, and energization of spare large power
transformers to be included in the Strategic
Transformer Reserve, including consideration of factors
such as--
(i) transformer transportation weight;
(ii) transformer size;
(iii) topology of critical substations;
(iv) availability of appropriate transformer
mounting pads;
(v) flexibility of the spare large power
transformers as described in subparagraph (E);
and
(vi) ability to rapidly transition a spare
large power transformer from storage to
energization;
(I) eligibility criteria for withdrawal of equipment
from the Strategic Transformer Reserve;
(J) the process by which owners or operators of
critically damaged large power transformers or
substations that are critical electric infrastructure
or serve defense and military installations may apply
for a withdrawal from the Strategic Transformer
Reserve;
(K) the process by which equipment withdrawn from the
Strategic Transformer Reserve is returned to the
Strategic Transformer Reserve or is replaced;
(L) possible fees to be paid by users of equipment
withdrawn from the Strategic Transformer Reserve;
(M) possible fees to be paid by owners and operators
of large power transformers and substations that are
critical electric infrastructure or serve defense and
military installations to cover operating costs of the
Strategic Transformer Reserve;
(N) the domestic and international large power
transformer supply chain;
(O) the potential reliability, cost, and operational
benefits of including emergency mobile substations in
any Strategic Transformer Reserve established under
this section; and
(P) other considerations for designing, constructing,
stocking, funding, and managing the Strategic
Transformer Reserve.
(d) Establishment.--The Secretary may establish a Strategic
Transformer Reserve in accordance with the plan prepared pursuant to
subsection (c) after the date that is 6 months after the date on which
such plan is submitted to Congress.
(e) Disclosure of Information.--Any information included in the
Strategic Transformer Reserve plan, or shared in the preparation and
development of such plan, the disclosure of which could cause harm to
critical electric infrastructure, shall be exempt from disclosure under
section 552(b)(3) of title 5, United States Code, and any State,
tribal, or local law requiring disclosure of information or records.
SEC. 1106. CYBER SENSE.
(a) In General.--The Secretary of Energy shall establish a voluntary
Cyber Sense program to identify and promote cyber-secure products
intended for use in the bulk-power system, as defined in section 215(a)
of the Federal Power Act (16 U.S.C. 824o(a)).
(b) Program Requirements.--In carrying out subsection (a), the
Secretary of Energy shall--
(1) establish a Cyber Sense testing process to identify
products and technologies intended for use in the bulk-power
system, including products relating to industrial control
systems, such as supervisory control and data acquisition
systems;
(2) for products tested and identified under the Cyber Sense
program, establish and maintain cybersecurity vulnerability
reporting processes and a related database;
(3) promulgate regulations regarding vulnerability reporting
processes for products tested and identified under the Cyber
Sense program;
(4) provide technical assistance to utilities, product
manufacturers, and other electric sector stakeholders to
develop solutions to mitigate identified vulnerabilities in
products tested and identified under the Cyber Sense program;
(5) biennially review products tested and identified under
the Cyber Sense program for vulnerabilities and provide
analysis with respect to how such products respond to and
mitigate cyber threats;
(6) develop procurement guidance for utilities for products
tested and identified under the Cyber Sense program;
(7) provide reasonable notice to the public, and solicit
comments from the public, prior to establishing or revising the
Cyber Sense testing process;
(8) oversee Cyber Sense testing carried out by third parties;
and
(9) consider incentives to encourage the use in the bulk-
power system of products tested and identified under the Cyber
Sense program.
(c) Disclosure of Information.--Any vulnerability reported pursuant
to regulations promulgated under subsection (b)(3), the disclosure of
which could cause harm to critical electric infrastructure (as defined
in section 215A of the Federal Power Act), shall be exempt from
disclosure under section 552(b)(3) of title 5, United States Code, and
any State, tribal, or local law requiring disclosure of information or
records.
(d) Federal Government Liability.--Consistent with other voluntary
Federal Government certification programs, nothing in this section
shall be construed to authorize the commencement of an action against
the United States Government with respect to the testing and
identification of a product under the Cyber Sense program.
SEC. 1107. STATE COVERAGE AND CONSIDERATION OF PURPA STANDARDS FOR
ELECTRIC UTILITIES.
(a) State Consideration of Resiliency and Advanced Energy Analytics
Technologies and Reliable Generation.--
(1) Consideration.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended
by adding the following at the end:
``(20) Improving the resilience of electric infrastructure.--
``(A) In general.--Each electric utility shall
develop a plan to use resiliency-related technologies,
upgrades, measures, and other approaches designed to
improve the resilience of electric infrastructure,
mitigate power outages, continue delivery of vital
services, and maintain the flow of power to facilities
critical to public health, safety, and welfare, to the
extent practicable using the most current data,
metrics, and frameworks related to current and future
threats, including physical and cyber attacks,
electromagnetic pulse attacks, geomagnetic
disturbances, seismic events, and severe weather and
other environmental stressors.
``(B) Resiliency-related technologies.--For purposes
of this paragraph, examples of resiliency-related
technologies, upgrades, measures, and other approaches
include--
``(i) hardening, or other enhanced
protection, of utility poles, wiring, cabling,
and other distribution components, facilities,
or structures;
``(ii) advanced grid technologies capable of
isolating or repairing problems remotely, such
as advanced metering infrastructure, high-tech
sensors, grid monitoring and control systems,
and remote reconfiguration and redundancy
systems;
``(iii) cybersecurity products and
components;
``(iv) distributed generation, including
back-up generation to power critical facilities
and essential services, and related integration
components, such as advanced inverter
technology;
``(v) microgrid systems, including hybrid
microgrid systems for isolated communities;
``(vi) combined heat and power;
``(vii) waste heat resources;
``(viii) non-grid-scale energy storage
technologies;
``(ix) wiring, cabling, and other
distribution components, including submersible
distribution components, and enclosures;
``(x) electronically controlled reclosers and
similar technologies for power restoration,
including emergency mobile substations, as
defined in section 1105 of the North American
Energy Security and Infrastructure Act of 2015;
``(xi) advanced energy analytics technology,
such as Internet-based and cloud-based
computing solutions and subscription licensing
models;
``(xii) measures that enhance resilience
through planning, preparation, response, and
recovery activities;
``(xiii) operational capabilities to enhance
resilience through rapid response recovery; and
``(xiv) measures to ensure availability of
key critical components through contracts,
cooperative agreements, stockpiling and
prepositioning, or other measures.
``(C) Rate recovery.--Each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority) shall consider authorizing each
such electric utility to recover any capital, operating
expenditure, or other costs of the electric utility
related to the procurement, deployment, or use of
resiliency-related technologies, including a reasonable
rate of return on the capital expenditures of the
electric utility for the procurement, deployment, or
use of resiliency-related technologies.
``(21) Promoting investments in advanced energy analytics
technology.--
``(A) In general.--Each electric utility shall
develop and implement a plan for deploying advanced
energy analytics technology.
``(B) Rate recovery.--Each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority) shall consider confirming and
clarifying, if necessary, that each such electric
utility is authorized to recover the costs of the
electric utility relating to the procurement,
deployment, or use of advanced energy analytics
technology, including a reasonable rate of return on
all such costs incurred by the electric utility for the
procurement, deployment, or use of advanced energy
analytics technology, provided such technology is used
by the electric utility for purposes of realizing
operational efficiencies, cost savings, enhanced energy
management and customer engagement, improvements in
system reliability, safety, and cybersecurity, or other
benefits to ratepayers.
``(C) Advanced energy analytics technology.--For
purposes of this paragraph, examples of advanced energy
analytics technology include Internet-based and cloud-
based computing solutions and subscription licensing
models, including software as a service that uses
cyber-physical systems to allow the correlation of data
aggregated from appropriate data sources and smart grid
sensor networks, employs analytics and machine
learning, or employs other advanced computing solutions
and models.
``(22) Assuring electric reliability with reliable
generation.--
``(A) Assurance of electric reliability.--Each
electric utility shall adopt or modify policies to
ensure that such electric utility incorporates reliable
generation into its integrated resource plan to assure
the availability of electric energy over a 10-year
planning period.
``(B) Reliable generation.--For purposes of this
paragraph, `reliable generation' means electric
generation facilities with reliability attributes that
include--
``(i)(I) possession of adequate fuel on-site
to enable operation for an extended period of
time;
``(II) the operational ability to generate
electric energy from more than one source; or
``(III) fuel certainty, through firm
contractual obligations, that ensures adequate
fuel supply to enable operation, for an
extended period of time, for the duration of an
emergency or severe weather conditions;
``(ii) operational characteristics that
enable the generation of electric energy for
the duration of an emergency or severe weather
conditions; and
``(iii) unless procured through other
procurement mechanisms, essential reliability
services, including frequency support and
regulation services.
``(23) Subsidization of customer-side technology.--
``(A) Consideration.--To the extent that a State
regulatory authority may require or allow rates charged
by any electric utility for which it has ratemaking
authority to electric consumers that do not use a
customer-side technology to include any cost, fee, or
charge that directly or indirectly cross-subsidizes the
deployment, construction, maintenance, or operation of
that customer-side technology, such authority shall
evaluate whether subsidizing the deployment,
construction, maintenance, or operation of a customer-
side technology would--
``(i) result in benefits predominately
enjoyed by only the users of that customer-side
technology;
``(ii) shift costs of a customer-side
technology to electricity consumers that do not
use that customer-side technology, particularly
where disparate economic or resource conditions
exist among the electricity consumers cross-
subsidizing the costumer-side technology;
``(iii) negatively affect resource
utilization, fuel diversity, or grid security;
``(iv) provide any unfair competitive
advantage to market the customer-side
technology; and
``(v) be necessary to fulfill an obligation
to serve electric consumers.
``(B) Public notice.--Each State regulatory authority
shall make available to the public the evaluation
completed under subparagraph (A) at least 90 days prior
to any proceedings in which such authority considers
the cross-subsidization of a customer-side technology.
``(C) Customer-side technology.--For purposes of this
paragraph, the term `customer-side technology' means a
device connected to the electricity distribution
system--
``(i) at, or on the customer side of, the
meter; or
``(ii) that, if owned or operated by or on
behalf of an electric utility, would otherwise
be at, or on the customer side of, the
meter.''.
(2) Compliance.--
(A) Time limitations.--Section 112(b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(b)) is amended by adding at the end the following:
``(7)(A) Not later than 1 year after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking authority)
and each nonregulated electric utility, as applicable, shall
commence the consideration referred to in section 111, or set a
hearing date for consideration, with respect to the standards
established by paragraphs (20), (22), and (23) of section
111(d).
``(B) Not later than 2 years after the date of the enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) and each nonregulated electric utility, as
applicable, shall complete the consideration, and shall make
the determination, referred to in section 111 with respect to
each standard established by paragraphs (20), (22), and (23) of
section 111(d).
``(8)(A) Not later than 6 months after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) and each nonregulated electric utility shall
commence the consideration referred to in section 111, or set a
hearing date for consideration, with respect to the standard
established by paragraph (21) of section 111(d).
``(B) Not later than 1 year after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall complete the
consideration, and shall make the determination, referred to in
section 111 with respect to the standard established by
paragraph (21) of section 111(d).''.
(B) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(c)) is amended by adding the following at the end:
``In the case of the standards established by
paragraphs (20) through (23) of section 111(d), the
reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference
to the date of enactment of such paragraphs.''.
(C) Prior state actions.--Section 112 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622) is amended by adding at the end the following new
subsection:
``(g) Prior State Actions.--Subsections (b) and (c) of this section
shall not apply to a standard established by paragraph (20), (21),
(22), or (23) of section 111(d) in the case of any electric utility in
a State if--
``(1) before the date of enactment of this subsection, the
State has implemented for such utility the standard concerned
(or a comparable standard);
``(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard concerned
(or a comparable standard) for such utility during the 3-year
period ending on the date of enactment of this subsection; or
``(3) the State legislature has voted on the implementation
of the standard concerned (or a comparable standard) for such
utility during the 3-year period ending on the date of
enactment of this subsection.''.
(b) Coverage for Competitive Markets.--Section 102 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2612) is amended by
adding at the end the following:
``(d) Coverage for Competitive Markets.--The requirements of this
title do not apply to the operations of an electric utility, or to
proceedings respecting such operations, to the extent that such
operations or proceedings, or any portion thereof, relate to the
competitive sale of retail electric energy that is unbundled or
separated from the regulated provision or sale of distribution
service.''.
SEC. 1108. RELIABILITY ANALYSIS FOR CERTAIN RULES THAT AFFECT ELECTRIC
GENERATING FACILITIES.
(a) Applicability.--This section shall apply with respect to any
proposed or final covered rule issued by a Federal agency for which
compliance with the rule may impact an electric utility generating unit
or units, including by resulting in closure or interruption to
operations of such a unit or units.
(b) Reliability Analysis.--
(1) Analysis of rules.--The Federal Energy Regulatory
Commission, in consultation with the Electric Reliability
Organization, shall conduct an independent reliability analysis
of a proposed or final covered rule under this section to
evaluate the anticipated effects of implementation and
enforcement of the rule on--
(A) electric reliability and resource adequacy;
(B) the electricity generation portfolio of the
United States;
(C) the operation of wholesale electricity markets;
and
(D) energy delivery and infrastructure, including
electric transmission facilities and natural gas
pipelines.
(2) Relevant information.--
(A) Materials from federal agencies.--A Federal
agency shall provide to the Commission materials and
information relevant to the analysis required under
paragraph (1) for a rule, including relevant data,
modeling, and resource adequacy and reliability
assessments, prepared or relied upon by such agency in
developing the rule.
(B) Analyses from other entities.--The Electric
Reliability Organization, regional entities, regional
transmission organizations, independent system
operators, and other reliability coordinators and
planning authorities shall timely conduct analyses and
provide such information as may be reasonably requested
by the Commission.
(3) Notice.--A Federal agency shall provide to the Commission
notice of the issuance of any proposed or final covered rule
not later than 15 days after the date of such issuance.
(c) Proposed Rules.--Not later than 150 days after the date of
publication in the Federal Register of a proposed rule described in
subsection (a), the Federal Energy Regulatory Commission shall make
available to the public an analysis of the proposed rule conducted in
accordance with subsection (b), and any relevant special assessment or
seasonal or long-term reliability assessment completed by the Electric
Reliability Organization.
(d) Final Rules.--
(1) Inclusion.--A final rule described in subsection (a)
shall include, if available at the time of issuance, a copy of
the analysis conducted pursuant to subsection (c) of the rule
as proposed.
(2) Analysis.--Not later than 120 days after the date of
publication in the Federal Register of a final rule described
in subsection (a), the Federal Energy Regulatory Commission
shall make available to the public an analysis of the final
rule conducted in accordance with subsection (b), and any
relevant special assessment or seasonal or long-term
reliability assessment completed by the Electric Reliability
Organization.
(e) Definitions.--In this section:
(1) Electric reliability organization.--The term ``Electric
Reliability Organization'' has the meaning given to such term
in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
(2) Federal agency.--The term ``Federal agency'' means an
agency, as that term is defined in section 551 of title 5,
United States Code.
(3) Covered rule.--The term ``covered rule'' means a proposed
or final rule that is estimated by the Federal agency issuing
the rule, or the Director of the Office of Management and
Budget, to result in an annual effect on the economy of
$1,000,000,000 or more.
SEC. 1109. CARBON CAPTURE, UTILIZATION, AND SEQUESTRATION TECHNOLOGIES.
(a) Amendments to the Energy Policy Act of 2005.--
(1) Fossil energy.--Section 961(a) of the Energy Policy Act
of 2005 (42 U.S.C. 16291(a)) is amended by adding at the end
the following:
``(8) Improving the conversion, use, and storage of carbon
dioxide produced from fossil fuels.''.
(2) Coal and related technologies program.--Section 962(b)(1)
of the Energy Policy Act of 2005 (42 U.S.C. 16292(b)(1)) is
amended--
(A) by striking ``during each of calendar years 2008,
2010, 2012, and 2016, and during each fiscal year
beginning after September 30, 2021,'' and inserting
``during each fiscal year beginning after September 30,
2016,'';
(B) by inserting ``allow for large-scale
demonstration and'' after ``technologies that would'';
and
(C) by inserting ``commercial use,'' after ``use of
coal for''.
(b) Increased Accountability With Respect to Carbon Capture,
Utilization, and Sequestration Projects.--
(1) DOE evaluation.--
(A) In general.--The Secretary of Energy (in this
subsection referred to as the ``Secretary'') shall, in
accordance with this subsection, annually conduct an
evaluation, and make recommendations, with respect to
each project conducted by the Secretary for research,
development, demonstration, or deployment of carbon
capture, utilization, and sequestration technologies
(also known as carbon capture and storage and
utilization technologies).
(B) Scope.--For purposes of this subsection, a
project includes any contract, lease, cooperative
agreement, or other similar transaction with a public
agency or private organization or person, entered into
or performed, or any payment made, by the Secretary for
research, development, demonstration, or deployment of
carbon capture, utilization, and sequestration
technologies.
(2) Requirements for evaluation.--In conducting an evaluation
of a project under this subsection, the Secretary shall--
(A) examine if the project has made advancements
toward achieving any specific goal of the project with
respect to a carbon capture, utilization, and
sequestration technology; and
(B) evaluate and determine if the project has made
significant progress in advancing a carbon capture,
utilization, and sequestration technology.
(3) Recommendations.--For each evaluation of a project
conducted under this subsection, if the Secretary determines
that--
(A) significant progress in advancing a carbon
capture, utilization, and sequestration technology has
been made, the Secretary shall assess the funding of
the project and make a recommendation as to whether
increased funding is necessary to advance the project;
or
(B) significant progress in advancing a carbon
capture, utilization, and sequestration technology has
not been made, the Secretary shall--
(i) assess the funding of the project and
make a recommendation as to whether increased
funding is necessary to advance the project;
(ii) assess and determine if the project has
reached its full potential; and
(iii) make a recommendation as to whether the
project should continue.
(4) Reports.--
(A) Report on evaluations and recommendations.--Not
later than 2 years after the date of enactment of this
Act, and every 2 years thereafter, the Secretary
shall--
(i) issue a report on the evaluations
conducted and recommendations made during the
previous year pursuant to this subsection; and
(ii) make each such report available on the
Internet website of the Department of Energy.
(B) Report.--Not later than 2 years after the date of
enactment of this Act, and every 3 years thereafter,
the Secretary shall submit to the Subcommittee on
Energy and Power of the Committee on Energy and
Commerce of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate
a report on--
(i) the evaluations conducted and
recommendations made during the previous 3
years pursuant to this subsection; and
(ii) the progress of the Department of Energy
in advancing carbon capture, utilization, and
sequestration technologies, including progress
in achieving the Department of Energy's goal of
having an array of advanced carbon capture and
sequestration technologies ready by 2020 for
large-scale demonstration.
SEC. 1110. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL
TRANSMISSION ORGANIZATIONS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.), as amended
by section 1104, is further amended by adding after section 215A the
following new section:
``SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL
TRANSMISSION ORGANIZATIONS.
``(a) Existing Capacity Markets.--
``(1) Analysis concerning capacity market design.--Not later
than 180 days after the date of enactment of this section, each
Regional Transmission Organization, and each Independent System
Operator, that operates a capacity market, or a comparable
market intended to ensure the procurement and availability of
sufficient future electric energy resources, that is subject to
the jurisdiction of the Commission, shall provide to the
Commission an analysis of how the structure of such market
meets the following criteria:
``(A) The structure of such market utilizes
competitive market forces to the extent practicable in
procuring capacity resources.
``(B) Consistent with subparagraph (A), the structure
of such market includes resource-neutral performance
criteria that ensure the procurement of sufficient
capacity from physical generation facilities that have
reliability attributes that include--
``(i)(I) possession of adequate fuel on-site
to enable operation for an extended period of
time;
``(II) the operational ability to generate
electric energy from more than one fuel source;
or
``(III) fuel certainty, through firm
contractual obligations, that ensures adequate
fuel supply to enable operation, for an
extended period of time, for the duration of an
emergency or severe weather conditions;
``(ii) operational characteristics that
enable the generation of electric energy for
the duration of an emergency or severe weather
conditions; and
``(iii) unless procured through other markets
or procurement mechanisms, essential
reliability services, including frequency
support and regulation services.
``(2) Commission evaluation and report.--Not later than 1
year after the date of enactment of this section, the
Commission shall make publicly available, and submit to the
Committee on Energy and Commerce in the House of
Representatives and the Committee on Energy and Natural
Resources in the Senate, a report containing--
``(A) evaluation of whether the structure of each
market addressed in an analysis submitted pursuant to
paragraph (1) meets the criteria under such paragraph,
based on the analysis; and
``(B) to the extent a market so addressed does not
meet such criteria, any recommendations with respect to
the procurement of sufficient capacity, as described in
paragraph (1)(B).
``(b) Commission Evaluation and Report for New Schedules.--
``(1) Inclusion of analysis in filing.--Except as provided in
subsection (a)(2), whenever a Regional Transmission
Organization or Independent System Operator files a new
schedule under section 205 to establish a market described in
subsection (a)(1), or that substantially modifies the capacity
market design of a market described in subsection (a)(1), the
Regional Transmission Organization or Independent System
Operator shall include in any such filing the analysis required
by subsection (a)(1).
``(2) Evaluation and report.--Not later than 180 days of
receiving an analysis under paragraph (1), the Commission shall
make publicly available, and submit to the Committee on Energy
and Commerce in the House of Representatives and the Committee
on Energy and Natural Resources in the Senate, a report
containing--
``(A) an evaluation of whether the structure of the
market addressed in the analysis meets the criteria
under subsection (a)(1), based on the analysis; and
``(B) to the extent the market does not meet such
criteria, any recommendations with respect to the
procurement of sufficient capacity, as described in
subsection (a)(1)(B).
``(c) Effect on Existing Approvals.--Nothing in this section shall be
considered to--
``(1) require a modification of the Commission's approval of
the capacity market design approved pursuant to docket numbers
ER15-623-000, EL15-29-000, EL14-52-000, and ER14-2419-000; or
``(2) provide grounds for the Commission to grant rehearing
or otherwise modify orders issued in those dockets.''.
Subtitle B--Energy Security and Infrastructure Modernization
SEC. 1201. ENERGY SECURITY AND INFRASTRUCTURE MODERNIZATION FUND.
(a) Establishment.--There is hereby established in the Treasury of
the United States a fund to be known as the Energy Security and
Infrastructure Modernization Fund (referred to in this section as the
``Fund''), consisting of--
(1) collections deposited in the Fund under subsection (c);
and
(2) amounts otherwise appropriated to the Fund.
(b) Purpose.--The purpose of the Fund is--
(1) to provide for the construction, maintenance, repair, and
replacement of Strategic Petroleum Reserve facilities; and
(2) for carrying out non-Strategic Petroleum Reserve projects
needed to enhance the energy security of the United States by
increasing the resilience, reliability, safety, and security of
energy supply, transmission, storage, or distribution
infrastructure.
(c) Collection and Deposit of Sale Proceeds in Fund.--
(1) Drawdown and sale.--Notwithstanding section 161 of the
Energy Policy and Conservation Act (42 U.S.C. 6241), to the
extent provided in advance in appropriation Acts, the Secretary
of Energy shall draw down and sell crude oil from the Strategic
Petroleum Reserve in amounts as authorized under subsection
(e), except as provided in paragraphs (2) and (3). Amounts
received for a sale under this subsection shall be deposited
into the Fund during the fiscal year in which the sale occurs.
Such amounts shall remain available in the Fund without fiscal
year limitation.
(2) Emergency protection.--The Secretary shall not draw down
and sell crude oil under this subsection in amounts that would
limit the authority to sell petroleum products under section
161(h) of the Energy Policy and Conservation Act (42 U.S.C.
6241(h)) in the full amount authorized by that subsection.
(3) Investment protection.--The Secretary shall not draw down
and sell crude oil under this subsection at a price lower than
the average price paid for oil in the Strategic Petroleum
Reserve.
(d) Authorized Uses of Fund.--
(1) In general.--Amounts in the Fund may be used for, or may
be credited as offsetting collections for amounts used for,
carrying out the programs described in paragraphs (2), (3), and
(4), to the extent provided in advance in appropriation Acts.
(2) Program to modernize the strategic petroleum reserve.--
(A) Findings.--Congress finds the following:
(i) The Strategic Petroleum Reserve is one of
the Nation's most valuable energy security
assets.
(ii) The age and condition of the Strategic
Petroleum Reserve have diminished its value as
a Federal energy security asset.
(iii) Global oil markets and the location and
amount of United States oil production and
refining capacity have dramatically changed in
the 40 years since the establishment of the
Strategic Petroleum Reserve.
(iv) Maximizing the energy security value of
the Strategic Petroleum Reserve requires a
modernized infrastructure that meets the
drawdown and distribution needs of changed
domestic and international oil and refining
market conditions.
(B) Reaffirmation of policy.--Congress reaffirms the
continuing strategic importance and need for the
Strategic Petroleum Reserve as found and declared in
section 151 of the Energy Policy and Conservation Act
(42 U.S.C. 6231).
(C) Program.--The Secretary of Energy shall establish
a Strategic Petroleum Reserve modernization program to
protect the United States economy from the impacts of
emergency petroleum product supply disruptions. The
program shall include--
(i) operational improvements to extend the
useful life of surface and subsurface
infrastructure;
(ii) maintenance of cavern storage integrity;
and
(iii) addition of infrastructure and
facilities to maximize the drawdown and
incremental distribution capacity of the
Strategic Petroleum Reserve.
(3) Program to enhance safety, performance, and resilience of
natural gas distribution systems.--
(A) Program.--The Secretary of Energy shall establish
a grant program to provide financial assistance to
States to offset the incremental rate increases paid by
eligible households resulting from the implementation
of State-approved infrastructure replacement, repair,
and maintenance programs designed to accelerate the
necessary replacement, repair, or maintenance of
natural gas distribution systems.
(B) Date of eligibility.--Awards may be provided
under this paragraph to offset rate increases described
in subsection (a) occurring on or after July 1, 2015.
(C) Prioritization.--The Secretary shall collaborate
with States to prioritize the distribution of grants
made under this paragraph. At a minimum, the Secretary
shall consider prioritizing the distribution of grants
to States which have--
(i) authorized or adopted enhanced
infrastructure replacement programs or
innovative rate recovery mechanisms, such as
infrastructure cost trackers and riders,
infrastructure base rate surcharges, deferred
regulatory asset programs, and earnings
stability mechanisms; and
(ii) a viable means for delivering financial
assistance to eligible households.
(D) Definition.--In this paragraph, the term
``eligible household'' means a household that is
eligible to receive payments under section 8624(b)(2)
of title 42, United States Code.
(4) Program to enhance electric infrastructure resilience,
reliability, and energy security.--
(A) Program.--The Secretary shall establish a
competitive grant program to provide grants to States,
units of local government, and Indian tribe economic
development entities to enhance energy security through
measures for electricity delivery infrastructure
hardening and enhanced resilience and reliability.
(B) Purpose of grants.--The Secretary may make grants
on a competitive basis to enable broader use of
resiliency-related technologies, upgrades, and
institutional measures and practices designed to--
(i) improve the resilience, reliability, and
security of electricity delivery
infrastructure;
(ii) improve preparedness and restoration
time to mitigate power disturbances resulting
from physical and cyber attacks,
electromagnetic pulse attacks, geomagnetic
disturbances, seismic events, and severe
weather and other environmental stressors;
(iii) continue delivery of power to
facilities critical to public health, safety,
and welfare, including hospitals, assisted
living facilities, and schools;
(iv) continue delivery of power to
electricity-dependent essential services,
including fueling stations and pumps,
wastewater and sewage treatment facilities, gas
pipeline infrastructure, communications
systems, transportation services and systems,
and services provided by emergency first
responders; and
(v) enhance regional grid resilience and the
resilience of electricity-dependent regional
infrastructure.
(C) Examples.--Resiliency-related technologies,
upgrades, and measures with respect to which grants may
be made under this paragraph include--
(i) hardening, or other enhanced protection,
of utility poles, wiring, cabling, and other
distribution components, facilities, or
structures;
(ii) advanced grid technologies capable of
isolating or repairing problems remotely, such
as advanced metering infrastructure, high-tech
sensors, grid monitoring and control systems,
and remote reconfiguration and redundancy
systems;
(iii) cybersecurity products and components;
(iv) distributed generation, including back-
up generation to power critical facilities and
essential services, and related integration
components, such as advanced inverter
technology;
(v) microgrid systems, including hybrid
microgrid systems for isolated communities;
(vi) combined heat and power;
(vii) waste heat resources;
(viii) non-grid-scale energy storage
technologies;
(ix) wiring, cabling, and other distribution
components, including submersible distribution
components, and enclosures;
(x) electronically controlled reclosers and
similar technologies for power restoration,
including emergency mobile substations, as
defined in section 1105 of the North American
Energy Security and Infrastructure Act of 2015;
(xi) advanced energy analytics technology,
such as Internet-based and cloud-based
computing solutions and subscription licensing
models;
(xii) measures that enhance resilience
through planning, preparation, response, and
recovery activities;
(xiii) operational capabilities to enhance
resilience through rapid response recovery; and
(xiv) measures to ensure availability of key
critical components through contracts,
cooperative agreements, stockpiling and
prepositioning, or other measures.
(D) Implementation.--Specific projects or programs
established, or to be established, pursuant to awards
provided under this paragraph shall be implemented
through the States by public and publicly regulated
entities on a cost-shared basis.
(E) Cooperation.--In carrying out projects or
programs established, or to be established, pursuant to
awards provided under this paragraph, award recipients
shall cooperate, as applicable, with--
(i) State public utility commissions;
(ii) State energy offices;
(iii) electric infrastructure owners and
operators; and
(iv) other entities responsible for
maintaining electric reliability.
(F) Data and metrics.--
(i) In general.--To the extent practicable,
award recipients shall utilize the most current
data, metrics, and frameworks related to--
(I) electricity delivery
infrastructure hardening and enhancing
resilience and reliability; and
(II) current and future threats,
including physical and cyber attacks,
electromagnetic pulse, geomagnetic
disturbances, seismic events, and
severe weather and other environmental
stressors.
(ii) Metrics.--Award recipients shall
demonstrate to the Secretary with measurable
and verifiable data how the deployment of
resiliency-related technologies, upgrades, and
technologies achieve improvements in the
resiliency and recovery of electricity delivery
infrastructure and related services, including
a comparison of data collected before and after
deployment. Metrics for demonstrating
improvements in resiliency and recovery may
include--
(I) power quality during power
disturbances when delivered power does
not meet power quality requirements of
the customer;
(II) duration of customer
interruptions;
(III) number of customers impacted;
(IV) cost impacts, including business
and other economic losses;
(V) impacts on electricity-dependent
essential services and critical
facilities; and
(VI) societal impacts.
(iii) Furthering energy assurance plans.--
Award recipients shall demonstrate to the
Secretary how projects or programs established,
or to be established, pursuant to awards
provided under this paragraph further
applicable State and local energy assurance
plans.
(G) Matching contributions.--The Secretary may not
make a grant under this paragraph unless the applicant
agrees to make available non-Federal contributions
(which may include in-kind contributions) in an amount
not less than 50 percent of the Federal contribution.
(e) Authorization of Appropriations.--There are authorized to be
appropriated (and drawdowns and sales under subsection (c) in an equal
amount are authorized)--
(1) for carrying out subsection (d)(2), $500,000,000 for the
period encompassing fiscal years 2017 through 2020;
(2) for carrying out subsection (d)(3), $100,000,000 for the
period encompassing fiscal years 2017 through 2020, of which
not more than 5 percent may be used for administrative
expenses; and
(3) for carrying out subsection (d)(4), $250,000,000 for the
period encompassing fiscal years 2017 through 2020, of which
not more than 5 percent may be used for administrative
expenses.
(f) Transmission of Department Budget Requests.--The Secretary of
Energy shall prepare and submit in the Department's annual budget
request to Congress--
(1) an itemization of the amounts of funds necessary to carry
out subsection (d); and
(2) a designation of any activities thereunder for which a
multiyear budget authority would be appropriate.
(g) Sunset.--The authority of the Secretary to drawdown and sell
crude oil from the Strategic Petroleum Reserve under this section shall
expire at the end of fiscal year 2020.
Subtitle C--Hydropower Regulatory Modernization
SEC. 1301. HYDROELECTRIC PRODUCTION AND EFFICIENCY INCENTIVES.
(a) Hydroelectric Production Incentives.--Section 242 of the Energy
Policy Act of 2005 (42 U.S.C.15881) is amended--
(1) in subsection (c), by striking ``10'' and inserting
``20'';
(2) in subsection (f), by striking ``20'' and inserting
``30''; and
(3) in subsection (g), by striking ``each of the fiscal years
2006 through 2015'' and inserting ``each of fiscal years 2016
through 2025''.
(b) Hydroelectric Efficiency Improvement.--Section 243(c) of the
Energy Policy Act of 2005 (42 U.S.C. 15882(c)) is amended by striking
``each of the fiscal years 2006 through 2015'' and inserting ``each of
fiscal years 2016 through 2025''.
SEC. 1302. PROTECTION OF PRIVATE PROPERTY RIGHTS IN HYDROPOWER
LICENSING.
(a) Licences.--Section 4(e) of the Federal Power Act (16 U.S.C.
797(e)) is amended--
(1) by striking ``and'' after ``recreational
opportunities,''; and
(2) by inserting ``, and minimizing infringement on the
useful exercise and enjoyment of property rights held by
nonlicensees'' after ``aspects of environmental quality''.
(b) Private Landownership.--Section 10 of the Federal Power Act (16
U.S.C. 803) is amended--
(1) in subsection (a)(1), by inserting ``, including
minimizing infringement on the useful exercise and enjoyment of
property rights held by nonlicensees'' after ``section 4(e)'';
and
(2) by adding at the end the following:
``(k) Private Landownership.--In developing any recreational resource
within the project boundary, the licensee shall consider private
landownership as a means to encourage and facilitate--
``(1) private investment; and
``(2) increased tourism and recreational use.''.
SEC. 1303. EXTENSION OF TIME FOR FERC PROJECT INVOLVING W. KERR SCOTT
DAM.
(a) In General.--Notwithstanding the time period specified in section
13 of the Federal Power Act (16 U.S.C. 806) that would otherwise apply
to the Federal Energy Regulatory Commission project numbered 12642, the
Commission may, at the request of the licensee for the project, and
after reasonable notice, in accordance with the good faith, due
diligence, and public interest requirements of that section and the
Commission's procedures under that section, extend the time period
during which the licensee is required to commence the construction of
the project for up to 3 consecutive 2-year periods from the date of the
expiration of the extension originally issued by the Commission.
(b) Reinstatement of Expired License.--If the period required for
commencement of construction of the project described in subsection (a)
has expired prior to the date of the enactment of this Act, the
Commission may reinstate the license effective as of the date of its
expiration and the first extension authorized under subsection (a)
shall take effect on the date of such expiration.
SEC. 1304. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended by
adding at the end the following:
``SEC. 34. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.
``(a) Definition.--In this section, the term `Federal
authorization'--
``(1) means any authorization required under Federal law with
respect to an application for a license, license amendment, or
exemption under this part; and
``(2) includes any permits, special use authorizations,
certifications, opinions, or other approvals as may be required
under Federal law to approve or implement the license, license
amendment, or exemption under this part.
``(b) Designation as Lead Agency.--
``(1) In general.--The Commission shall act as the lead
agency for the purposes of coordinating all applicable Federal
authorizations and for the purposes of complying with the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.).
``(2) Other agencies and indian tribes.--
``(A) In general.--Each Federal, State, and local
government agency and Indian tribe considering an
aspect of an application for Federal authorization
shall coordinate with the Commission and comply with
the deadline established in the schedule developed for
the project in accordance with the rule issued by the
Commission under subsection (c).
``(B) Identification.--The Commission shall identify,
as early as practicable after it is notified by the
applicant of a project or facility requiring Commission
action under this part, any Federal or State agency,
local government, or Indian tribe that may consider an
aspect of an application for a Federal authorization.
``(C) Notification.--
``(i) In general.--The Commission shall
notify any agency and Indian tribe identified
under subparagraph (B) of the opportunity to
participate in the process of reviewing an
aspect of an application for a Federal
authorization.
``(ii) Deadline.--Each agency and Indian
tribe receiving a notice under clause (i) shall
submit a response acknowledging receipt of the
notice to the Commission within 30 days of
receipt of such notice and request.
``(D) Issue identification and resolution.--
``(i) Identification of issues.--Federal,
State, and local government agencies and Indian
tribes that may consider an aspect of an
application for Federal authorization shall
identify, as early as possible, and share with
the Commission and the applicant, any issues of
concern identified during the pendency of the
Commission's action under this part relating to
any Federal authorization that may delay or
prevent the granting of such authorization,
including any issues that may prevent the
agency or Indian tribe from meeting the
schedule established for the project in
accordance with the rule issued by the
Commission under subsection (c).
``(ii) Issue resolution.--The Commission may
forward any issue of concern identified under
clause (i) to the heads of the relevant State
and Federal agencies (including, in the case of
scheduling concerns identified by a State or
local government agency or Indian tribe, the
Federal agency overseeing the delegated
authority, or the Secretary of the Interior
with regard to scheduling concerns identified
by an Indian tribe) for resolution. The
Commission and any relevant agency shall enter
into a memorandum of understanding to
facilitate interagency coordination and
resolution of such issues of concern, as
appropriate.
``(c) Schedule.--
``(1) Commission rulemaking to establish process to set
schedule.--Within 180 days of the date of enactment of this
section the Commission shall, in consultation with the
appropriate Federal agencies, issue a rule, after providing for
notice and public comment, establishing a process for setting a
schedule following the filing of an application under this part
for the review and disposition of each Federal authorization.
``(2) Elements of scheduling rule.--In issuing a rule under
this subsection, the Commission shall ensure that the schedule
for each Federal authorization--
``(A) includes deadlines for actions by--
``(i) any Federal or State agency, local
government, or Indian tribe that may consider
an aspect of an application for the Federal
authorization;
``(ii) the applicant;
``(iii) the Commission; and
``(iv) other participants in a proceeding;
``(B) is developed in consultation with the applicant
and any agency and Indian tribe that submits a response
under subsection (b)(2)(C)(ii);
``(C) provides an opportunity for any Federal or
State agency, local government, or Indian tribe that
may consider an aspect of an application for the
applicable Federal authorization to identify and
resolve issues of concern, as provided in subsection
(b)(2)(D);
``(D) complies with applicable schedules established
under Federal and State law;
``(E) ensures expeditious completion of all
proceedings required under Federal and State law, to
the extent practicable; and
``(F) facilitates completion of Federal and State
agency studies, reviews, and any other procedures
required prior to, or concurrent with, the preparation
of the Commission's environmental document required
under the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(d) Transmission of Final Schedule.--
``(1) In general.--For each application for a license,
license amendment, or exemption under this part, the Commission
shall establish a schedule in accordance with the rule issued
by the Commission under subsection (c). The Commission shall
publicly notice and transmit the final schedule to the
applicant and each agency and Indian tribe identified under
subsection (b)(2)(B).
``(2) Response.--Each agency and Indian tribe receiving a
schedule under this subsection shall acknowledge receipt of
such schedule in writing to the Commission within 30 days.
``(e) Adherence to Schedule.--All applicants, other licensing
participants, and agencies and tribes considering an aspect of an
application for a Federal authorization shall meet the deadlines set
forth in the schedule established pursuant to subsection (d)(1).
``(f) Application Processing.--The Commission, Federal, State, and
local government agencies, and Indian tribes may allow an applicant
seeking a Federal authorization to fund a third-party contractor
selected by such agency or tribe to assist in reviewing the
application. All costs of an agency or tribe incurred pursuant to
direct funding by the applicant, including all costs associated with
the third party contractor, shall not be considered costs of the United
States for the administration of this part under section 10(e).
``(g) Commission Recommendation on Scope of Environmental Review.--
For the purposes of coordinating Federal authorizations for each
project, the Commission shall consult with and make a recommendation to
agencies and Indian tribes receiving a schedule under subsection (d) on
the scope of the environmental review for all Federal authorizations
for such project. Each Federal and State agency and Indian tribe shall
give due consideration and may give deference to the Commission's
recommendations, to the extent appropriate under Federal law.
``(h) Failure To Meet Schedule.--A Federal, State, or local
government agency or Indian tribe that anticipates that it will be
unable to complete its disposition of a Federal authorization by the
deadline set forth in the schedule established under subsection (d)(1)
may file for an extension as provided under section 313(b)(2).
``(i) Consolidated Record.--The Commission shall, with the
cooperation of Federal, State, and local government agencies and Indian
tribes, maintain a complete consolidated record of all decisions made
or actions taken by the Commission or by a Federal administrative
agency or officer (or State or local government agency or officer or
Indian tribe acting under delegated Federal authority) with respect to
any Federal authorization. Such record shall constitute the record for
judicial review under section 313(b).''.
SEC. 1305. JUDICIAL REVIEW OF DELAYED FEDERAL AUTHORIZATIONS.
Section 313(b) of the Federal Power Act (16 U.S.C. 825l(b)) is
amended--
(1) by striking ``(b) Any party'' and inserting the
following:
``(b) Judicial Review.--
``(1) In general.--Any party''; and
(2) by adding at the end the following:
``(2) Delay of a federal authorization.--Any Federal, State,
or local government agency or Indian tribe that will not
complete its disposition of a Federal authorization by the
deadline set forth in the schedule by the Commission under
section 34 may file for an extension in the United States court
of appeals for any circuit wherein the project or proposed
project is located, or in the United States Court of Appeals
for the District of Columbia. Such petition shall be filed not
later than 30 days prior to such deadline. The court shall only
grant an extension if the agency or tribe demonstrates, based
on the record maintained under section 34, that it otherwise
complied with the requirements of section 34 and that complying
with the schedule set by the Commission would have prevented
the agency or tribe from complying with applicable Federal or
State law. If the court grants the extension, the court shall
set a reasonable schedule and deadline, not to exceed 90 days,
for the agency to act on remand. If the court denies the
extension, or if an agency or tribe does not file for an
extension as provided in this subsection and does not complete
its disposition of a Federal authorization by the applicable
deadline, the Commission and applicant may move forward with
the proposed action.''.
SEC. 1306. LICENSING STUDY IMPROVEMENTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended
by section 1304, is further amended by adding at the end the following:
``SEC. 35. LICENSING STUDY IMPROVEMENTS.
``(a) In General.--To facilitate the timely and efficient completion
of the license proceedings under this part, the Commission shall, in
consultation with applicable Federal and State agencies and interested
members of the public--
``(1) compile current and accepted best practices in
performing studies required in such license proceedings,
including methodologies and the design of studies to assess the
full range of environmental impacts of a project that reflect
the most recent peer-reviewed science;
``(2) compile a comprehensive collection of studies and data
accessible to the public that could be used to inform license
proceedings under this part; and
``(3) encourage license applicants, agencies, and Indian
tribes to develop and use, for the purpose of fostering timely
and efficient consideration of license applications, a limited
number of open-source methodologies and tools applicable across
a wide array of projects, including water balance models and
streamflow analyses.
``(b) Use of Studies.--To the extent practicable, the Commission and
other Federal, State, and local government agencies and Indian tribes
considering an aspect of an application for Federal authorization shall
use current, accepted science toward studies and data in support of
their actions. Any participant in a proceeding with respect to a
Federal authorization shall demonstrate a study requested by the party
is not duplicative of current, existing studies that are applicable to
the project.
``(c) Basin-Wide or Regional Review.--The Commission shall establish
a program to develop comprehensive plans, at the request of project
applicants, on a regional or basin-wide scale, in consultation with the
applicants, appropriate Federal agencies, and affected States, local
governments, and Indian tribes, in basins or regions with respect to
which there are more than one project or application for a project.
Upon such a request, the Commission, in consultation with the
applicants, such Federal agencies, and affected States, local
governments, and Indian tribes, may conduct or commission regional or
basin-wide environmental studies, with the participation of at least 2
applicants. Any study conducted under this subsection shall apply only
to a project with respect to which the applicant participates.''.
SEC. 1307. CLOSED-LOOP PUMPED STORAGE PROJECTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended
by section 1306, is further amended by adding at the end the following:
``SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS.
``(a) Definition.--For purposes of this section, a closed-loop pumped
storage project is a project--
``(1) in which the upper and lower reservoirs do not impound
or directly withdraw water from navigable waters; or
``(2) that is not continuously connected to a naturally
flowing water feature.
``(b) In General.--As provided in this section, the Commission may
issue and amend licenses and preliminary permits, as appropriate, for
closed-loop pumped storage projects.
``(c) Dam Safety.--Before issuing any license for a closed-loop
pumped storage project, the Commission shall assess the safety of
existing dams and other structures related to the project (including
possible consequences associated with failure of such structures).
``(d) License Conditions.--With respect to a closed-loop pumped
storage project, the authority of the Commission to impose conditions
on a license under sections 4(e), 10(a), 10(g), and 10(j) shall not
apply, and any condition included in or applicable to a closed-loop
pumped storage project licensed under this section, including any
condition or other requirement of a Federal authorization, shall be
limited to those that are--
``(1) necessary to protect public safety; or
``(2) reasonable, economically feasible, and essential to
prevent loss of or damage to, or to mitigate adverse effects
on, fish and wildlife resources directly caused by the
construction and operation of the project, as compared to the
environmental baseline existing at the time the Commission
completes its environmental review.
``(e) Transfers.--Notwithstanding section 5, and regardless of
whether the holder of a preliminary permit for a closed-loop pumped
storage project claimed municipal preference under section 7(a) when
obtaining the permit, the Commission may, to facilitate development of
a closed-loop pumped storage project--
``(1) add entities as joint permittees following issuance of
a preliminary permit; and
``(2) transfer a license in part to one or more nonmunicipal
entities as co-licensees with a municipality.''.
SEC. 1308. LICENSE AMENDMENT IMPROVEMENTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended
by section 1307, is further amended by adding at the end the following:
``SEC. 37. LICENSE AMENDMENT IMPROVEMENTS.
``(a) Qualifying Project Upgrades.--
``(1) In general.--As provided in this section, the
Commission may approve an application for an amendment to a
license issued under this part for a qualifying project
upgrade.
``(2) Application.--A licensee filing an application for an
amendment to a project license under this section shall include
in such application information sufficient to demonstrate that
the proposed change to the project described in the application
is a qualifying project upgrade.
``(3) Initial determination.--Not later than 15 days after
receipt of an application under paragraph (2), the Commission
shall make an initial determination as to whether the proposed
change to the project described in the application for a
license amendment is a qualifying project upgrade. The
Commission shall publish its initial determination and issue
notice of the application filed under paragraph (2). Such
notice shall solicit public comment on the initial
determination within 45 days.
``(4) Public comment on qualifying criteria.--The Commission
shall accept public comment regarding whether a proposed
license amendment is for a qualifying project upgrade for a
period of 45 days beginning on the date of publication of a
public notice described in paragraph (3), and shall--
``(A) if no entity contests whether the proposed
license amendment is for a qualifying project upgrade
during such comment period, immediately publish a
notice stating that the initial determination has not
been contested; or
``(B) if an entity contests whether the proposed
license amendment is for a qualifying project upgrade
during the comment period, issue a written
determination in accordance with paragraph (5).
``(5) Written determination.--If an entity contests whether
the proposed license amendment is for a qualifying project
upgrade during the comment period under paragraph (4), the
Commission shall, not later than 30 days after the date of
publication of the public notice of the initial determination
under paragraph (3), issue a written determination as to
whether the proposed license amendment is for a qualifying
project upgrade.
``(6) Public comment on amendment application.--If no entity
contests whether the proposed license amendment is for a
qualifying project upgrade during the comment period under
paragraph (4) or the Commission issues a written determination
under paragraph (5) that a proposed license amendment is a
qualifying project upgrade, the Commission shall--
``(A) during the 60-day period beginning on the date
of publication of a notice under paragraph (4)(A) or
the date on which the Commission issues the written
determination under paragraph (5), as applicable,
solicit comments from each Federal, State, and local
government agency and Indian tribe considering an
aspect of an application for Federal authorization (as
defined in section 34) with respect to the proposed
license amendment, as well as other interested
agencies, Indian tribes, and members of the public; and
``(B) during the 90-day period beginning on the date
of publication of a notice under paragraph (4)(A) or
the date on which the Commission issues the written
determination under paragraph (5), as applicable,
consult with--
``(i) appropriate Federal agencies and the
State agency exercising administrative control
over the fish and wildlife resources, and water
quality and supply, of the State in which the
qualifying project upgrade is located;
``(ii) any Federal department supervising any
public lands or reservations occupied by the
qualifying project upgrade; and
``(iii) any Indian tribe affected by the
qualifying project upgrade.
``(7) Federal authorizations.--The schedule established by
the Commission under section 34 for any project upgrade under
this subsection shall require final disposition on all
necessary Federal authorizations (as defined in section 34),
other than final action by the Commission, by not later than
120 days after the date on which the Commission issues a notice
under paragraph (4)(A) or a written determination under
paragraph (5), as applicable.
``(8) Commission action.--Not later than 150 days after the
date on which the Commission issues a notice under paragraph
(4)(A) or a written determination under paragraph (5), as
applicable, the Commission shall take final action on the
license amendment application.
``(9) License amendment conditions.--Any condition included
in or applicable to a license amendment approved under this
subsection, including any condition or other requirement of a
Federal authorization, shall be limited to those that are--
``(A) necessary to protect public safety; or
``(B) reasonable, economically feasible, and
essential to prevent loss of or damage to, or to
mitigate adverse effects on, fish and wildlife
resources, water supply, and water quality that are
directly caused by the construction and operation of
the qualifying project upgrade, as compared to the
environmental baseline existing at the time the
Commission approves the application for the license
amendment.
``(10) Proposed license amendments that are not qualifying
project upgrades.--If the Commission determines under paragraph
(3) or (5) that a proposed license amendment is not for a
qualifying project upgrade, the procedures under paragraphs (6)
through (9) shall not apply to the application.
``(11) Rulemaking.--Not later than 180 days after the date of
enactment of this section, the Commission shall, after notice
and opportunity for public comment, issue a rule to implement
this subsection.
``(12) Definitions.--For purposes of this subsection:
``(A) Qualifying project upgrade.--The term
`qualifying project upgrade' means a change to a
project licensed under this part that meets the
qualifying criteria, as determined by the Commission.
``(B) Qualifying criteria.--The term `qualifying
criteria' means, with respect to a project license
under this part, a change to the project that--
``(i) if carried out, would be unlikely to
adversely affect any species listed as
threatened or endangered under the Endangered
Species Act of 1973 or result in the
destruction or adverse modification of critical
habitat, as determined in consultation with the
Secretary of the Interior or Secretary of
Commerce, as appropriate, in accordance with
section 7 of the Endangered Species Act of
1973;
``(ii) is consistent with any applicable
comprehensive plan under section 10(a)(2);
``(iii) includes only changes to project
lands, waters, or operations that, in the
judgment of the Commission, would result in
only insignificant or minimal cumulative
adverse environmental effects;
``(iv) would be unlikely to adversely affect
water quality and water supply; and
``(v) proposes to implement--
``(I) capacity increases, efficiency
improvements, or other enhancements to
hydropower generation at the licensed
project;
``(II) environmental protection,
mitigation, or enhancement measures to
benefit fish and wildlife resources or
other natural and cultural resources;
or
``(III) improvements to public
recreation at the licensed project.
``(b) Amendment Approval Processes.--
``(1) Rule.--Not later than 1 year after the date of
enactment of this section, the Commission shall, after notice
and opportunity for public comment, issue a rule establishing
new standards and procedures for license amendment applications
under this part. In issuing such rule, the Commission shall
seek to develop the most efficient and expedient process,
consultation, and review requirements, commensurate with the
scope of different categories of proposed license amendments.
Such rule shall account for differences in environmental
effects across a wide range of categories of license amendment
applications.
``(2) Capacity.--In issuing a rule under this subsection, the
Commission shall take into consideration that a change in
generating or hydraulic capacity may indicate the potential
environmental effects of a proposed amendment but is not
determinative of such effects.
``(3) Process options.--In issuing a rule under this
subsection, the Commission shall take into consideration the
range of process options available under the Commission's
regulations for new and original license applications and adapt
such options to amendment applications, where appropriate.''.
SEC. 1309. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED
DAMS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.), as amended
by section 1308, is further amended by adding at the end the following:
``SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED
DAMS.
``(a) Exemptions for Qualifying Facilities.--
``(1) Exemption qualifications.--Subject to the requirements
of this subsection, the Commission may grant an exemption in
whole or in part from the requirements of this part, including
any license requirements contained in this part, to any
facility the Commission determines is a qualifying facility.
``(2) Consultation with federal and state agencies.--In
granting any exemption under this subsection, the Commission
shall consult with--
``(A) the United States Fish and Wildlife Service,
the National Marine Fisheries Service, and the State
agency exercising administrative control over the fish
and wildlife resources of the State in which the
facility will be located, in the manner provided by the
Fish and Wildlife Coordination Act;
``(B) any Federal department supervising any public
lands or reservations occupied by the project; and
``(C) any Indian tribe affected by the project.
``(3) Exemption conditions.--
``(A) In general.--The Commission shall include in
any exemption granted under this subsection only such
terms and conditions that the Commission determines
are--
``(i) necessary to protect public safety; or
``(ii) reasonable, economically feasible, and
essential to prevent loss of or damage to, or
to mitigate adverse effects on, fish and
wildlife resources directly caused by the
construction and operation of the qualifying
facility, as compared to the environmental
baseline existing at the time the Commission
grants the exemption.
``(B) No changes to release regime.--No Federal
authorization required with respect to a qualifying
facility described in paragraph (1), including an
exemption granted by the Commission under this
subsection, may include any condition or other
requirement that results in any material change to the
storage, control, withdrawal, diversion, release, or
flow operations of the associated qualifying nonpowered
dam.
``(4) Environmental review.--The Commission's environmental
review under the National Environmental Policy Act of 1969 of a
proposed exemption under this subsection shall consist only of
an environmental assessment, unless the Commission determines,
by rule or order, that the Commission's obligations under such
Act for granting exemptions under this subsection can be met
through a categorical exclusion.
``(5) Violation of terms of exemption.--Any violation of a
term or condition of any exemption granted under this
subsection shall be treated as a violation of a rule or order
of the Commission under this Act.
``(6) Annual charges for enhancement activities.--Exemptees
under this subsection for any facility located at a non-Federal
dam shall pay to the United States reasonable annual charges in
an amount to be fixed by the Commission for the purpose of
funding environmental enhancement projects in watersheds in
which facilities exempted under this subsection are located.
Such annual charges shall be equivalent to the annual charges
for use of a Government dam under section 10(e), unless the
Commission determines, by rule, that a lower charge is
appropriate to protect exemptees' investment in the project or
avoid increasing the price to consumers of power due to such
charges. The proceeds of charges made by the Commission under
this paragraph shall be paid into the Treasury of the United
States and credited to miscellaneous receipts. Subject to
annual appropriation Acts, such proceeds shall be available to
Federal and State fish and wildlife agencies for purposes of
carrying out specific environmental enhancement projects in
watersheds in which one or more facilities exempted under this
subsection are located. Not later than 180 days after the date
of enactment of this section, the Commission shall establish
rules, after notice and opportunity for public comment, for the
collection and administration of annual charges under this
paragraph.
``(7) Effect of jurisdiction.--The jurisdiction of the
Commission over any qualifying facility exempted under this
subsection shall extend only to the qualifying facility
exempted and any associated primary transmission line, and
shall not extend to any conduit, dam, impoundment, shoreline or
other land, or any other project work associated with the
qualifying facility exempted under this subsection.
``(b) Definitions.--For purposes of this section--
``(1) Federal authorization.--The term `Federal
authorization' has the same meaning as provided in section 34.
``(2) Qualifying criteria.--The term `qualifying criteria'
means, with respect to a facility--
``(A) as of the date of enactment of this section,
the facility is not licensed under, or exempted from
the license requirements contained in, this part;
``(B) the facility will be associated with a
qualifying nonpowered dam;
``(C) the facility will be constructed, operated, and
maintained for the generation of electric power;
``(D) the facility will use for such generation any
withdrawals, diversions, releases, or flows from the
associated qualifying nonpowered dam, including its
associated impoundment or other infrastructure; and
``(E) the operation of the facility will not result
in any material change to the storage, control,
withdrawal, diversion, release, or flow operations of
the associated qualifying nonpowered dam.
``(3) Qualifying facility.--The term `qualifying facility'
means a facility that is determined under this section to meet
the qualifying criteria.
``(4) Qualifying nonpowered dam.--The term `qualifying
nonpowered dam' means any dam, dike, embankment, or other
barrier--
``(A) the construction of which was completed on or
before the date of enactment of this section;
``(B) that is operated for the control, release, or
distribution of water for agricultural, municipal,
navigational, industrial, commercial, environmental,
recreational, aesthetic, or flood control purposes;
``(C) that, as of the date of enactment of this
section, is not equipped with hydropower generating
works that are licensed under, or exempted from the
license requirements contained in, this part; and
``(D) that, in the case of a non-Federal dam, has
been certified by an independent consultant approved by
the Commission as complying with the Commission's dam
safety requirements.''.
TITLE II--21ST CENTURY WORKFORCE
SEC. 2001. ENERGY AND MANUFACTURING WORKFORCE DEVELOPMENT.
(a) In General.--The Secretary of Energy (in this section referred to
as the ``Secretary'') shall establish and carry out a comprehensive
program to improve education and training for energy and manufacturing-
related jobs in order to increase the number of skilled workers trained
to work in energy and manufacturing-related fields, including by--
(1) encouraging underrepresented groups, including religious
and ethnic minorities, women, veterans, individuals with
disabilities, and socioeconomically disadvantaged individuals
to enter into the science, technology, engineering, and
mathematics (in this section referred to as ``STEM'') fields;
(2) encouraging the Nation's education system to equip
students with the skills, mentorships, training, and technical
expertise necessary to fill the employment opportunities vital
to managing and operating the Nation's energy and manufacturing
industries;
(3) providing students and other candidates for employment
with the necessary skills and certifications for skilled,
semiskilled, and highly skilled energy and manufacturing-
related jobs; and
(4) strengthening and more fully engaging Department of
Energy programs and labs in carrying out the Department's
Minorities in Energy Initiative.
(b) Priority.--The Secretary shall make educating and training
underrepresented groups for energy and manufacturing-related jobs a
national priority under the program established under subsection (a).
(c) Direct Assistance.--In carrying out the program established under
subsection (a), the Secretary shall provide direct assistance
(including financial assistance awards, technical expertise, wraparound
services, career coaching, mentorships, internships, and partnerships)
to schools, community colleges, workforce development organizations,
nonprofit organizations, labor organizations, apprenticeship programs,
and minority serving institutions. The Secretary shall distribute
direct assistance in a manner proportional to energy and manufacturing
industry needs and demand for jobs, consistent with information
obtained under subsections (e)(3) and (i).
(d) Clearinghouse.--In carrying out the program established under
subsection (a), the Secretary shall establish a clearinghouse to--
(1) maintain and update information and resources on training
and workforce development programs for energy and
manufacturing-related jobs, including job training and
workforce development programs available to assist displaced
and unemployed energy and manufacturing workers transitioning
to new employment; and
(2) act as a resource, and provide guidance, for schools,
community colleges, universities (including minority serving
institutions), workforce development programs, labor-management
organizations, and industry organizations that would like to
develop and implement energy and manufacturing-related training
programs.
(e) Collaboration.--In carrying out the program established under
subsection (a), the Secretary--
(1) shall collaborate with schools, community colleges,
universities (including minority serving institutions),
workforce-training organizations, national laboratories,
unions, State energy offices, workforce investment boards, and
the energy and manufacturing industries;
(2) shall encourage and foster collaboration, mentorships,
and partnerships among organizations (including unions,
industry, schools, community colleges, workforce-development
organizations, and colleges and universities) that currently
provide effective job training programs in the energy and
manufacturing fields and institutions (including schools,
community colleges, workforce development programs, and
colleges and universities) that seek to establish these types
of programs in order to share best practices and approaches
that best suit local, State, and national needs; and
(3) shall collaborate with the Bureau of Labor Statistics,
the Department of Commerce, the Bureau of the Census, and the
energy and manufacturing industries to develop a comprehensive
and detailed understanding of the energy and manufacturing
workforce needs and opportunities by State and by region, and
publish an annual report on energy and manufacturing job
creation by the sectors enumerated in subsection (i).
(f) Guidelines for Educational Institutions.--
(1) In general.--In carrying out the program established
under subsection (a), the Secretary, in collaboration with the
Secretary of Education, the Secretary of Commerce, the
Secretary of Labor, the National Science Foundation, and
industry shall develop voluntary guidelines and best practices
for educational institutions of all levels, including for
elementary and secondary schools and community colleges and for
undergraduate, graduate, and postgraduate university programs,
to help provide graduates with the skills necessary to work in
energy and manufacturing-related jobs.
(2) Input.--The Secretary shall solicit input from the oil,
gas, coal, renewable, nuclear, utility, energy-intensive and
advanced manufacturing, and pipeline industries in developing
guidelines under paragraph (1).
(3) Energy and manufacturing efficiency and conservation
initiatives.--The guidelines developed under paragraph (1)
shall include grade-specific guidelines for teaching energy and
manufacturing efficiency and conservation initiatives to
educate students and families.
(4) STEM education.--The guidelines developed under paragraph
(1) shall promote STEM education as it relates to job
opportunities in energy and manufacturing-related fields of
study in schools, community colleges, and universities
nationally.
(g) Outreach to Minority Serving Institutions.--In carrying out the
program established under subsection (a), the Secretary shall--
(1) give special consideration to increasing outreach to
minority serving institutions (including historically black
colleges and universities, predominantly black institutions,
Hispanic serving institutions, and tribal institutions);
(2) make resources available to minority serving institutions
with the objective of increasing the number of skilled
minorities and women trained to go into the energy and
manufacturing sectors;
(3) encourage industry to improve the opportunities for
students of minority serving institutions to participate in
industry internships and cooperative work/study programs; and
(4) partner with the Department of Energy laboratories to
increase underrepresented groups' participation in internships,
fellowships, traineeships, and employment at all Department of
Energy laboratories.
(h) Outreach to Displaced and Unemployed Energy and Manufacturing
Workers.--In carrying out the program established under subsection (a),
the Secretary shall--
(1) give special consideration to increasing outreach to
employers and job trainers preparing displaced and unemployed
energy and manufacturing workers for emerging energy and
manufacturing jobs;
(2) make resources available to institutions serving
displaced and unemployed energy and manufacturing workers with
the objective of training individuals to re-enter the energy
and manufacturing workforce;
(3) encourage the energy and manufacturing industries to
improve opportunities for displaced and unemployed energy and
manufacturing workers to participate in internships and
cooperative work/study programs; and
(4) work closely with the energy and manufacturing industries
to identify energy and manufacturing operations, such as coal-
fired power plants and coal mines, scheduled for closure and to
provide early intervention assistance to workers employed at
such energy and manufacturing operations by--
(A) giving special consideration to employers and job
trainers preparing such workers for emerging energy and
manufacturing jobs;
(B) making resources available to institutions
serving such workers with the objective of training
them to re-enter the energy and manufacturing
workforce; and
(C) encouraging the energy and manufacturing
industries to improve opportunities for such workers to
participate in internships and cooperative work-study
programs.
(i) Guidelines To Develop Skills for an Energy and Manufacturing
Industry Workforce.--In carrying out the program established under
subsection (a), the Secretary shall collaborate with representatives
from the energy and manufacturing industries (including the oil, gas,
coal, nuclear, utility, pipeline, renewable, petrochemical,
manufacturing, and electrical construction sectors) to identify the
areas of highest need in each sector and to develop guidelines for the
skills necessary to develop a workforce trained to go into the
following sectors of the energy and manufacturing sectors:
(1) Energy efficiency industry, including work in energy
efficiency, conservation, weatherization, or retrofitting, or
as inspectors or auditors.
(2) Pipeline industry, including work in pipeline
construction and maintenance or work as engineers or technical
advisors.
(3) Utility industry, including work in the generation,
transmission, and distribution of electricity and natural gas,
such as utility technicians, operators, lineworkers, engineers,
scientists, and information technology specialists.
(4) Alternative fuels, including work in biofuel development
and production.
(5) Nuclear industry, including work as scientists,
engineers, technicians, mathematicians, or security personnel.
(6) Oil and gas industry, including work as scientists,
engineers, technicians, mathematicians, petrochemical
engineers, or geologists.
(7) Renewable industry, including work in the development,
manufacturing, and production of renewable energy sources (such
as solar, hydropower, wind, or geothermal energy).
(8) Coal industry, including work as coal miners, engineers,
developers and manufacturers of state-of-the-art coal
facilities, technology vendors, coal transportation workers and
operators, or mining equipment vendors.
(9) Manufacturing industry, including work as operations
technicians, operations and design in additive manufacturing,
3-D printing, advanced composites, and advanced aluminum and
other metal alloys, industrial energy efficiency management
systems, including power electronics, and other innovative
technologies.
(10) Chemical manufacturing industry, including work in
construction (such as welders, pipefitters, and tool and die
makers) or as instrument and electrical technicians,
machinists, chemical process operators, chemical engineers,
quality and safety professionals, and reliability engineers.
(j) Enrollment in Training and Apprenticeship Programs.--In carrying
out the program established under subsection (a), the Secretary shall
work with industry, organized labor, and community-based workforce
organizations to help identify students and other candidates, including
from underrepresented communities such as minorities, women, and
veterans, to enroll into training and apprenticeship programs for
energy and manufacturing-related jobs.
TITLE III--ENERGY SECURITY AND DIPLOMACY
SEC. 3001. SENSE OF CONGRESS.
Congress finds the following:
(1) North America's energy revolution has significantly
enhanced energy security in the United States, and
fundamentally changed the Nation's energy future from that of
scarcity to abundance.
(2) North America's energy abundance has increased global
energy supplies and reduced the price of energy for consumers
in the United States and abroad.
(3) Allies and trading partners of the United States,
including in Europe and Asia, are seeking stable and affordable
energy supplies from North America to enhance their energy
security.
(4) The United States has an opportunity to improve its
energy security and promote greater stability and affordability
of energy supplies for its allies and trading partners through
a more integrated, secure, and competitive North American
energy system.
(5) The United States also has an opportunity to promote such
objectives by supporting the free flow of energy commodities
and more open, transparent, and competitive global energy
markets, and through greater Federal agency coordination
relating to regulations or agency actions that significantly
affect the supply, distribution, or use of energy.
SEC. 3002. ENERGY SECURITY VALUATION.
(a) Establishment of Energy Security Valuation Methods.--Not later
than one year after the date of enactment of this Act, the Secretary of
Energy, in collaboration with the Secretary of State, shall develop and
transmit, after public notice and comment, to the Committee on Energy
and Commerce and the Committee on Foreign Affairs of the House of
Representatives and the Committee on Energy and Natural Resources and
the Committee on Foreign Relations of the Senate a report that develops
recommended United States energy security valuation methods. In
developing the report, the Secretaries may consider the recommendations
of the Administration's Quadrennial Energy Review released on April 21,
2015. The report shall--
(1) evaluate and define United States energy security to
reflect modern domestic and global energy markets and the
collective needs of the United States and its allies and
partners;
(2) identify transparent and uniform or coordinated
procedures and criteria to ensure that energy-related actions
that significantly affect the supply, distribution, or use of
energy are evaluated with respect to their potential impact on
energy security, including their impact on--
(A) consumers and the economy;
(B) energy supply diversity and resiliency;
(C) well-functioning and competitive energy markets;
(D) United States trade balance; and
(E) national security objectives; and
(3) include a recommended implementation strategy that
identifies and aims to ensure that the procedures and criteria
referred to in paragraph (2) are--
(A) evaluated consistently across the Federal
Government; and
(B) weighed appropriately and balanced with
environmental considerations required by Federal law.
(b) Participation.--In developing the report referred to in
subsection (a), the Secretaries may consult with relevant Federal,
State, private sector, and international participants, as appropriate
and consistent with applicable law.
SEC. 3003. NORTH AMERICAN ENERGY SECURITY PLAN.
(a) Requirement.--Not later than one year after the date of enactment
of this Act, the Secretary of Energy, in collaboration with the
Secretary of State, shall develop and transmit to the Committee on
Energy and Commerce and the Committee on Foreign Affairs of the House
of Representatives and the Committee on Energy and Natural Resources
and the Committee on Foreign Relations of the Senate the plan described
in subsection (b).
(b) Purpose.--The plan referred to in subsection (a) shall include--
(1) a recommended framework and implementation strategy to--
(A) improve planning and coordination with Canada and
Mexico to enhance energy integration, strengthen North
American energy security, and promote efficiencies in
the exploration, production, storage, supply,
distribution, marketing, pricing, and regulation of
North American energy resources; and
(B) address--
(i) North American energy public data,
statistics, and mapping collaboration;
(ii) responsible and sustainable best
practices for the development of unconventional
oil and natural gas; and
(iii) modern, resilient energy infrastructure
for North America, including physical
infrastructure as well as institutional
infrastructure such as policies, regulations,
and practices relating to energy development;
and
(2) a recommended framework and implementation strategy to
improve collaboration with Caribbean and Central American
partners on energy security, including actions to support--
(A) more open, transparent, and competitive energy
markets;
(B) regulatory capacity building;
(C) improvements to energy transmission and storage;
and
(D) improvements to the performance of energy
infrastructure and efficiency.
(c) Participation.--In developing the plan referred to in subsection
(a), the Secretaries may consult with other Federal, State, private
sector, and international participants, as appropriate and consistent
with applicable law.
SEC. 3004. COLLECTIVE ENERGY SECURITY.
(a) In General.--The Secretary of Energy and the Secretary of State
shall collaborate to strengthen domestic energy security and the energy
security of the allies and trading partners of the United States,
including through actions that support or facilitate--
(1) energy diplomacy;
(2) the delivery of United States assistance, including
energy resources and technologies, to prevent or mitigate an
energy security crisis;
(3) the development of environmentally and commercially
sustainable energy resources;
(4) open, transparent, and competitive energy markets; and
(5) regulatory capacity building.
(b) Energy Security Forums.--Not later than one year after the date
of enactment of this Act, the Secretary of Energy, in collaboration
with the Secretary of State, shall convene not less than 2 forums to
promote the collective energy security of the United States and its
allies and trading partners. The forums shall include participation by
the Secretary of Energy and the Secretary of State. In addition, an
invitation shall be extended to--
(1) appropriate representatives of foreign governments that
are allies or trading partners of the United States; and
(2) independent experts and industry representatives.
(c) Requirements.--The forums shall--
(1) consist of at least one Trans-Atlantic and one Trans-
Pacific energy security forum;
(2) be designed to foster dialogue among government
officials, independent experts, and industry representatives
regarding--
(A) the current state of global energy markets;
(B) trade and investment issues relevant to energy;
and
(C) barriers to more open, competitive, and
transparent energy markets; and
(3) be recorded and made publicly available on the Department
of Energy's website, including, not later than 30 days after
each forum, publication on the website any significant
outcomes.
(d) Notification.--At least 30 days before each of the forums
referred to in subsection (b), the Secretary of Energy shall send a
notification regarding the forum to--
(1) the chair and the ranking minority member of the
Committee on Energy and Commerce and the Committee on Foreign
Affairs of the House of Representatives; and
(2) the chair and ranking minority member of the Committee on
Energy and Natural Resources and the Committee on Foreign
Relations of the Senate.
SEC. 3005. STRATEGIC PETROLEUM RESERVE MISSION READINESS PLAN.
Not later than 180 days after the date of enactment of this Act, the
Secretary of Energy shall conduct a long-range strategic review of the
Strategic Petroleum Reserve and develop and transmit to Congress a plan
that includes an analysis and implementation schedule that--
(1) specifies near-term and long-term roles of the Strategic
Petroleum Reserve relative to United States energy security and
economic goals and objectives;
(2) describes existing legal authorities governing the
policies, configuration, and capabilities of the Strategic
Petroleum Reserve;
(3) identifies Strategic Petroleum Reserve configuration and
performance capabilities and recommends an action plan to
achieve the optimal--
(A) capacity, location, and composition of petroleum
products in the Reserve; and
(B) storage and distributional capabilities; and
(4) estimates the resources required to attain and maintain
the Strategic Petroleum Reserve's long-term sustainability and
operational effectiveness.
SEC. 3006. AUTHORIZATION TO EXPORT NATURAL GAS.
(a) Decision Deadline.--For proposals that must also obtain
authorization from the Federal Energy Regulatory Commission or the
United States Maritime Administration to site, construct, expand, or
operate LNG export facilities, the Department of Energy shall issue a
final decision on any application for the authorization to export
natural gas under section 3 of the Natural Gas Act (15 U.S.C. 717b) not
later than 30 days after the later of--
(1) the conclusion of the review to site, construct, expand,
or operate the LNG facilities required by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.); or
(2) the date of enactment of this Act.
(b) Conclusion of Review.--For purposes of subsection (a), review
required by the National Environmental Policy Act of 1969 shall be
considered concluded--
(1) for a project requiring an Environmental Impact
Statement, 30 days after publication of a Final Environmental
Impact Statement;
(2) for a project for which an Environmental Assessment has
been prepared, 30 days after publication by the Department of
Energy of a Finding of No Significant Impact; and
(3) upon a determination by the lead agency that an
application is eligible for a categorical exclusion pursuant to
National Environmental Policy Act of 1969 implementing
regulations.
(c) Public Disclosure of Export Destinations.--Section 3 of the
Natural Gas Act (15 U.S.C. 717b) is amended by adding at the end the
following:
``(g) Public Disclosure of LNG Export Destinations.--As a condition
for approval of any authorization to export LNG, the Secretary of
Energy shall require the applicant to publicly disclose the specific
destination or destinations of any such authorized LNG exports.''.
TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY
Subtitle A--Energy Efficiency
CHAPTER 1--FEDERAL AGENCY ENERGY EFFICIENCY
SEC. 4111. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.
(a) Amendment.--Subtitle C of title V of the Energy Independence and
Security Act of 2007 (Public Law 110-140; 121 Stat. 1661) is amended by
adding at the end the following:
``SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION
TECHNOLOGIES.
``(a) Definitions.--In this section:
``(1) Director.--The term `Director' means the Director of
the Office of Management and Budget.
``(2) Information technology.--The term `information
technology' has the meaning given that term in section 11101 of
title 40, United States Code.
``(b) Development of Implementation Strategy.--Not later than 1 year
after the date of enactment of this section, each Federal agency shall
coordinate with the Director, the Secretary, and the Administrator of
the Environmental Protection Agency to develop an implementation
strategy (that includes 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,
taking into consideration the performance goals established under
subsection (d).
``(c) Administration.--In developing an implementation strategy under
subsection (b), each Federal agency shall consider--
``(1) advanced metering infrastructure;
``(2) energy-efficient data center strategies and methods of
increasing asset and infrastructure utilization;
``(3) advanced power management tools;
``(4) building information modeling, including building
energy management;
``(5) secure telework and travel substitution tools; and
``(6) mechanisms to ensure that the agency realizes the
energy cost savings brought about through increased efficiency
and utilization.
``(d) Performance Goals.--
``(1) In general.--Not later than 180 days after the date of
enactment of this section, 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.
``(2) Best practices.--The Chief Information Officers Council
established under section 3603 of title 44, United States Code,
shall recommend best practices for the attainment of the
performance goals, which shall include Federal agency
consideration of, to the extent applicable by law, the use of--
``(A) energy savings performance contracting; and
``(B) utility energy services contracting.
``(e) Reports.--
``(1) Agency reports.--Each Federal agency shall include in
the report of the agency under section 527 a description of the
efforts and results of the agency under this section.
``(2) OMB government efficiency reports and scorecards.--
Effective beginning not later than October 1, 2017, the
Director shall include in the annual report and scorecard of
the Director required under section 528 a description of the
efforts and results of Federal agencies under this section.''.
(b) Conforming Amendment.--The table of contents for the Energy
Independence and Security Act of 2007 is amended by adding after the
item relating to section 529 the following:
``Sec. 530. Energy-efficient and energy-saving information
technologies.''.
SEC. 4112. 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 (b)(2)(D)(iv), by striking ``determined by
the organization'' and inserting ``proposed by the
stakeholders'';
(2) by striking subsection (b)(3); and
(3) by striking subsections (c) through (g) and inserting the
following:
``(c) Stakeholder Involvement.--The Secretary and the Administrator
shall carry out subsection (b) in collaboration with the information
technology industry and other key stakeholders, with the goal of
producing results that accurately reflect the most relevant and useful
information available. In such collaboration, the Secretary and the
Administrator shall pay particular attention to organizations that--
``(1) have members with expertise in energy efficiency and in
the development, operation, and functionality of data centers,
information technology equipment, and software, such as
representatives of hardware manufacturers, data center
operators, and facility managers;
``(2) obtain and address input from Department of Energy
National Laboratories or any college, university, research
institution, industry association, company, or public interest
group with applicable expertise;
``(3) follow--
``(A) commonly accepted procedures for the
development of specifications; and
``(B) accredited standards development processes; and
``(4) have a mission to promote energy efficiency for data
centers and information technology.
``(d) Measurements and Specifications.--The Secretary and the
Administrator shall consider and assess the adequacy of the
specifications, measurements, best practices, and benchmarks described
in subsection (b) for use by the Federal Energy Management Program, the
Energy Star Program, and other efficiency programs of the Department of
Energy or the Environmental Protection Agency.
``(e) Study.--The Secretary, in collaboration with the Administrator,
shall, not later than 18 months after the date of enactment of the
North American Energy Security and Infrastructure Act of 2015, 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--
``(1) a comparison and gap analysis of the estimates and
projections contained in the original report with new data
regarding the period from 2008 through 2015;
``(2) an analysis considering the impact of information
technologies, including virtualization and cloud computing, in
the public and private sectors;
``(3) an evaluation of the impact of the combination of cloud
platforms, mobile devices, social media, and big data on data
center energy usage;
``(4) an evaluation of water usage in data centers and
recommendations for reductions in such water usage; and
``(5) updated projections and recommendations for best
practices through fiscal year 2020.
``(f) Data Center Energy Practitioner Program.--The Secretary, in
collaboration with key stakeholders and the Director of 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
Federal data centers. Each Federal agency shall consider having the
data centers of the agency evaluated every 4 years, in accordance with
section 543(f) of the National Energy Conservation Policy Act (42
U.S.C. 8253), by energy practitioners certified pursuant to such
program.
``(g) Open Data Initiative.--The Secretary, in collaboration with key
stakeholders and the Director of the Office of Management and Budget,
shall establish an open data initiative for Federal data center energy
usage data, with the purpose of making such data available and
accessible in a manner that encourages further data center innovation,
optimization, and consolidation. In establishing the initiative, the
Secretary shall consider the use of the online Data Center Maturity
Model.
``(h) International Specifications and Metrics.--The Secretary, in
collaboration with key stakeholders, shall actively participate in
efforts to harmonize global specifications and metrics for data center
energy and water efficiency.
``(i) Data Center Utilization Metric.--The Secretary, in
collaboration with key stakeholders, shall facilitate the development
of an efficiency metric that measures the energy efficiency of a data
center (including equipment and facilities).
``(j) Protection of Proprietary Information.--The Secretary and the
Administrator shall not disclose any proprietary information or trade
secrets provided by any individual or company for the purposes of
carrying out this section or the programs and initiatives established
under this section.''.
SEC. 4113. REPORT ON ENERGY AND WATER SAVINGS POTENTIAL FROM THERMAL
INSULATION.
(a) Report.--Not later than 1 year after the date of enactment of
this Act, the Secretary of Energy, in consultation with appropriate
Federal agencies and relevant stakeholders, shall submit to the
Committee on Energy and Natural Resources of the Senate and the
Committee on Energy and Commerce of the House of Representatives a
report on the impact of thermal insulation on both energy and water use
systems for potable hot and chilled water in Federal buildings, and the
return on investment of installing such insulation.
(b) Contents.--The report shall include--
(1) an analysis based on the cost of municipal or regional
water for delivered water and the avoided cost of new water;
and
(2) a summary of energy and water savings, including short-
term and long-term (20 years) projections of such savings.
SEC. 4114. FEDERAL PURCHASE REQUIREMENT.
(a) Definitions.--Section 203(b) of the Energy Policy Act of 2005 (42
U.S.C. 15852(b)) is amended by striking paragraph (2) and inserting the
following:
``(2) Renewable energy.--The term `renewable energy' means
electric energy, or thermal energy if resulting from a thermal
energy project placed in service after December 31, 2014,
generated from, or avoided by, solar, wind, biomass, landfill
gas, ocean (including tidal, wave, current, and thermal),
geothermal, municipal solid waste (in accordance with
subsection (e)), qualified waste heat resource, or new
hydroelectric generation capacity achieved from increased
efficiency or additions of new capacity at an existing
hydroelectric project.
``(3) Qualified waste heat resource.--The term `qualified
waste heat resource' means--
``(A) exhaust heat or flared gas from any industrial
process;
``(B) waste gas or industrial tail gas that would
otherwise be flared, incinerated, or vented;
``(C) a pressure drop in any gas for an industrial or
commercial process; or
``(D) such other forms of waste heat as the Secretary
determines appropriate.''.
(b) Paper Recycling.--Section 203 of the Energy Policy Act of 2005
(42 U.S.C. 15852) is amended by adding at the end the following:
``(e) Paper Recycling.--
``(1) Separate collection.--For purposes of this section, any
Federal agency may consider electric energy generation
purchased from a facility to be renewable energy if the
municipal solid waste used by the facility to generate the
electricity is--
``(A) separately collected (within the meaning of
section 246.101(z) of title 40, Code of Federal
Regulations, as in effect on the date of enactment of
the North American Energy Security and Infrastructure
Act of 2015) from paper that is commonly recycled; and
``(B) processed in a way that keeps paper that is
commonly recycled segregated from non-recyclable solid
waste.
``(2) Incidental inclusion.--Municipal solid waste used to
generate electric energy that meets the conditions described in
paragraph (1) shall be considered renewable energy even if the
municipal solid waste contains incidental commonly recycled
paper.
``(3) No effect on existing processes.--Nothing in paragraph
(1) shall be interpreted to require a State or political
subdivision of a State, directly or indirectly, to change the
systems, processes, or equipment it uses to collect, treat,
dispose of, or otherwise use municipal solid waste, within the
meaning of the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.), nor require a change to the regulations that implement
subtitle D of such Act (42 U.S.C. 6941 et seq.).''.
SEC. 4115. 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 North
American Energy Security and Infrastructure Act of
2015, 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 that energy manager's 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
or 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,
recommissioning, or retrocommissioning;
``(iii) has not had a major change in
function or use since the previous evaluation
and commissioning, recommissioning, or
retrocommissioning;
``(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, recommissioning,
or retrocommissioning 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.--Each energy manager,
as part of the certification system under paragraph (7)
and using guidelines developed by the Secretary, shall
provide an explanation regarding any life-cycle cost-
effective measures described in subparagraph (A)(i)
that have not been implemented.''; and
(D) in paragraph (7)(C), by adding at the end the
following:
``(iii) Summary report.--The Secretary shall
make publicly available a report that
summarizes the information tracked under
subparagraph (B)(i) by each agency and, as
applicable, by each type of measure.''.
SEC. 4116. FEDERAL BUILDING ENERGY EFFICIENCY PERFORMANCE STANDARDS;
CERTIFICATION SYSTEM AND LEVEL FOR FEDERAL
BUILDINGS.
(a) Definitions.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832) 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:
``(17) 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 the end of 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 North
American Energy Security and Infrastructure Act
of 2015, 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
IECC (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 North American Energy
Security and Infrastructure Act
of 2015; 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
IECC 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
version of the ASHRAE Standard
or the IECC, 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; and
``(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.
``(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 ASHRAE
Standard 90.1 or the IECC, 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) in subparagraph (D)--
(i) by striking ``(D) Not later than'' and
all that follows through the end of the first
sentence of clause (i)(III) and inserting the
following:
``(D) Certification for green buildings.--
``(i) In general.--'';
(ii) by striking clause (ii);
(iii) in clause (iii), by striking ``(iii) In
identifying'' and inserting the following:
``(ii) Considerations.--In identifying'';
(iv) in clause (iv)--
(I) by striking ``(iv) At least
once'' and inserting the following:
``(iii) Study.--At least once''; and
(II) by striking ``clause (iii)'' and
inserting ``clause (ii)'';
(v) in clause (v)--
(I) by striking ``(v) The Secretary
may'' and inserting the following:
``(iv) Internal certification processes.--The
Secretary may''; and
(II) by striking ``clause (i)(III)''
each place it appears and inserting
``clause (i)'';
(vi) in clause (vi)--
(I) by striking ``(vi) With respect''
and inserting the following:
``(v) Privatized military housing.--With
respect''; and
(II) by striking ``develop
alternative criteria to those
established by subclauses (I) and (III)
of clause (i) that achieve an
equivalent result in terms of energy
savings, sustainable design, and'' and
inserting ``develop alternative
certification systems and levels than
the systems and levels identified under
clause (i) that achieve an equivalent
result in terms of''; and
(vii) in clause (vii), by striking ``(vii) In
addition to'' and inserting the following:
``(vi) Water conservation technologies.--In
addition to''; and
(2) by striking subsections (c) and (d) and inserting the
following:
``(c) Periodic Review.--The Secretary shall--
``(1) 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. 4117. OPERATION OF BATTERY RECHARGING STATIONS IN PARKING AREAS
USED BY FEDERAL EMPLOYEES.
(a) Authorization.--
(1) In general.--The head of any office of the Federal
Government which owns or operates a parking area for the use of
its employees (either directly or indirectly through a
contractor) may install, construct, operate, and maintain on a
reimbursable basis a battery recharging station in such area
for the use of privately owned vehicles of employees of the
office and others who are authorized to park in such area.
(2) Use of vendors.--The head of an office may carry out
paragraph (1) through a contract with a vendor, under such
terms and conditions (including terms relating to the
allocation between the office and the vendor of the costs of
carrying out the contract) as the head of the office and the
vendor may agree to.
(b) Imposition of Fees To Cover Costs.--
(1) Fees.--The head of an office of the Federal Government
which operates and maintains a battery recharging station under
this section shall charge fees to the individuals who use the
station in such amount as is necessary to ensure that office
recovers all of the costs it incurs in installing,
constructing, operating, and maintaining the station.
(2) Deposit and availability of fees.--Any fees collected by
the head of an office under this subsection shall be--
(A) deposited monthly in the Treasury to the credit
of the appropriations account for salaries and expenses
of the office; and
(B) available for obligation without further
appropriation during--
(i) the fiscal year collected; and
(ii) the fiscal year following the fiscal
year collected.
(c) No Effect on Existing Programs for House and Senate.--Nothing in
this section may be construed to affect the installation, construction,
operation, or maintenance of battery recharging stations by the
Architect of the Capitol--
(1) under Public Law 112-170 (2 U.S.C. 2171), relating to
employees of the House of Representatives and individuals
authorized to park in any parking area under the jurisdiction
of the House of Representatives on the Capitol Grounds; or
(2) under Public Law 112-167 (2 U.S.C. 2170), relating to
employees of the Senate and individuals authorized to park in
any parking area under the jurisdiction of the Senate on the
Capitol Grounds.
(d) Effective Date.--This section shall apply with respect to fiscal
year 2016 and each succeeding fiscal year.
CHAPTER 2--ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING
SEC. 4121. INCLUSION OF SMART GRID CAPABILITY ON ENERGY GUIDE LABELS.
Section 324(a)(2) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)(2)) is amended by adding the following at the end:
``(J) Smart grid capability on energy guide labels.--
``(i) Rule.--Not later than 1 year after the
date of enactment of this subparagraph, the
Commission shall initiate a rulemaking to
consider making a special note in a prominent
manner on any Energy Guide label for any
product that includes Smart Grid capability
that--
``(I) Smart Grid capability is a
feature of that product;
``(II) the use and value of that
feature depend on the Smart Grid
capability of the utility system in
which the product is installed and the
active utilization of that feature by
the customer; and
``(III) on a utility system with
Smart Grid capability, the use of the
product's Smart Grid capability could
reduce the customer's cost of the
product's annual operation as a result
of the incremental energy and
electricity cost savings that would
result from the customer taking full
advantage of such Smart Grid
capability.
``(ii) Deadline.--Not later than 3 years
after the date of enactment of this
subparagraph, the Commission shall complete the
rulemaking initiated under clause (i).''.
SEC. 4122. VOLUNTARY VERIFICATION 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 verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products.--
``(A) Reliance on voluntary programs.--For the
purpose of verifying compliance with energy
conservation standards established under sections 325
and 342 for 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 shall rely on testing conducted by recognized
voluntary verification programs that are recognized by
the Secretary in accordance with subparagraph (B).
``(B) Recognition of voluntary verification
programs.--
``(i) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary shall initiate a negotiated
rulemaking in accordance with subchapter III of
chapter 5 of title 5, United States Code
(commonly known as the `Negotiated Rulemaking
Act of 1990') to develop criteria that have
consensus support for achieving recognition by
the Secretary as an approved voluntary
verification program. Any subsequent amendment
to such criteria may be made only pursuant to a
subsequent negotiated rulemaking in accordance
with subchapter III of chapter 5 of title 5,
United States Code.
``(ii) Minimum requirements.--The criteria
developed under clause (i) shall, at a minimum,
ensure that a voluntary verification program--
``(I) is nationally recognized;
``(II) is operated by a third party
and not directly operated by a program
participant;
``(III) satisfies any applicable
elements of--
``(aa) International
Organization for
Standardization standard
numbered 17025; and
``(bb) any other relevant
International Organization for
Standardization standards
identified and agreed to
through the negotiated
rulemaking under clause (i);
``(IV) at least annually tests
independently obtained products
following the test procedures
established under this title to verify
the certified rating of a
representative sample of products and
equipment within the scope of the
program;
``(V) maintains a publicly available
list of all ratings of products subject
to verification;
``(VI) requires the changing of the
performance rating or removal of the
product or equipment from the program
if testing determines that the
performance rating does not meet the
levels the manufacturer has certified
to the Secretary;
``(VII) requires new program
participants to substantiate ratings
through test data generated in
accordance with Department of Energy
regulations;
``(VIII) allows for challenge testing
of products and equipment within the
scope of the program;
``(IX) requires program participants
to disclose the performance rating of
all covered products and equipment
within the scope of the program for the
covered product or equipment;
``(X) provides to the Secretary--
``(aa) an annual report of
all test results, the contents
of which shall be determined
through the negotiated
rulemaking process under clause
(i); and
``(bb) test reports, on the
request of the Secretary, that
note any instructions specified
by the manufacturer or the
representative of the
manufacturer for the purpose of
conducting the verification
testing, to be exempted from
disclosure under section
552(b)(4) of title 5, United
States Code; and
``(XI) satisfies any additional
requirements or standards that the
Secretary shall establish consistent
with this subparagraph.
``(iii) Cessation of recognition.--The
Secretary may only cease recognition of a
voluntary verification program as an approved
program described in subparagraph (A) upon a
finding that the program is not meeting its
obligations for compliance through program
review criteria developed during the negotiated
rulemaking conducted under subparagraph (B).
``(C) Administration.--
``(i) In general.--The Secretary shall not
require--
``(I) manufacturers to participate in
a recognized voluntary verification
program described in subparagraph (A);
or
``(II) participating manufacturers to
provide information that has already
been provided to the Secretary.
``(ii) List of covered products.--The
Secretary may maintain a publicly available
list of covered products and equipment that
distinguishes between products that are and are
not covered products and equipment verified
through a recognized voluntary verification
program described in subparagraph (A).
``(iii) Periodic verification testing.--The
Secretary--
``(I) shall not subject products or
equipment that have been verification
tested under a recognized voluntary
verification program described in
subparagraph (A) to periodic
verification testing to verify the
accuracy of the certified performance
rating of the products or equipment;
but
``(II) may require testing of
products or equipment described in
subclause (I)--
``(aa) if the testing is
necessary--
``(AA) to assess the
overall performance of
a voluntary
verification program;
``(BB) to address
specific performance
issues;
``(CC) for use in
updating test
procedures and
standards; or
``(DD) for other
purposes consistent
with this title; or
``(bb) if such testing is
agreed to during the negotiated
rulemaking conducted under
subparagraph (B).
``(D) Effect on other authority.--Nothing in this
paragraph limits the authority of the Secretary to
enforce compliance with any law.''.
SEC. 4123. FACILITATING CONSENSUS FURNACE STANDARDS.
(a) Congressional Findings and Declaration of Purpose.--
(1) Findings.--Congress finds that--
(A) acting pursuant to the requirements of section
325 of the Energy Policy and Conservation Act (42
U.S.C. 6295), the Secretary of Energy is considering
amending the energy conservation standards applicable
to residential nonweatherized gas furnaces and mobile
home gas furnaces;
(B) numerous stakeholders, representing
manufacturers, distributors, and installers of
residential nonweatherized gas furnaces and mobile home
furnaces, natural gas utilities, home builders,
multifamily property owners, and energy efficiency,
environmental, and consumer advocates have begun
negotiations in an attempt to agree on a consensus
recommendation to the Secretary on levels for such
standards that will meet the statutory criteria; and
(C) the stakeholders believe these negotiations are
likely to result in a consensus recommendation, but
several of the stakeholders do not support suspending
the current rulemaking.
(2) Purpose.--It is the purpose of this section to provide
the stakeholders described in paragraph (1) with an opportunity
to continue negotiations for a limited time period to
facilitate the proposal for adoption of standards that enjoy
consensus support, while not delaying the current rulemaking
except to the extent necessary to provide such opportunity.
(b) Opportunity for a Negotiated Furnace Standard.--Section 325(f)(4)
of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)(4)) is
amended by adding after subparagraph (D) the following:
``(E)(i) Unless the Secretary has published such a notice prior to
the date of enactment of this Act, the Secretary shall publish, not
later than October 31, 2015, a supplemental notice of proposed
rulemaking or a notice of data availability updating the proposed rule
entitled `Energy Conservation Program for Consumer Products: Energy
Conservation Standards for Residential Furnaces' and published in the
Federal Register on March 12, 2015 (80 Fed. Reg. 13119), to provide
notice and an opportunity for comment on--
``(I) dividing nonweatherized gas furnaces into two or more
product classes with separate energy conservation standards
based on capacity; and
``(II) any other matters the Secretary determines
appropriate.
``(ii) On receipt of a statement that is submitted on or before
January 1, 2016, jointly by interested persons that are fairly
representative of relevant points of view, that contains recommended
standards for nonweatherized gas furnaces and mobile home gas furnaces
that are consistent with the requirements of this part (except that the
date on which such standards will apply may be earlier or later than
the date required under this part), the Secretary shall evaluate the
standards proposed in the joint statement for consistency with the
requirements of subsection (o), and shall publish notice of the
potential adoption of the standards proposed in the joint statement,
modified as necessary to ensure consistency with subsection (o). The
Secretary shall solicit public comment for a period of at least 30 days
with respect to such notice.
``(iii) Not later than July 31, 2016, but not before July 1, 2016,
the Secretary shall publish a final rule containing a determination of
whether the standards for nonweatherized gas furnaces and mobile home
gas furnaces should be amended. Such rule shall contain any such
amendments to the standards.''.
SEC. 4124. 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, water 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.--To increase the value and capabilities
of the industrial research and assessment centers, the centers
shall--
``(A) coordinate with Manufacturing Extension
Partnership Centers of the National Institute of
Standards and Technology;
``(B) coordinate with the Building Technologies
Office of the Department of Energy to provide building
assessment services to manufacturers;
``(C) 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; and
``(D) 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.
``(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) 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).''.
(d) Conforming Amendment.--The item relating to section 452 in the
table of contents for the Energy Independence and Security Act of 2007
is amended to read as follows:
``Sec. 452. Future of Industry program.''.
SEC. 4125. NO WARRANTY FOR CERTAIN CERTIFIED ENERGY STAR PRODUCTS.
Section 324A of the Energy Policy and Conservation Act (42 U.S.C.
6294a) is amended by adding at the end the following new subsection:
``(e) No Warranty.--
``(1) In general.--Any disclosure relating to participation
of a product in the Energy Star program shall not create an
express or implied warranty or give rise to any private claims
or rights of action under State or Federal law relating to the
disqualification of that product from Energy Star if--
``(A) the product has been certified by a
certification body recognized by the Energy Star
program;
``(B) the Administrator has approved corrective
measures, including a determination of whether or not
consumer compensation is appropriate; and
``(C) the responsible party has fully complied with
all approved corrective measures.
``(2) Construal.--Nothing in this subsection shall be
construed to require the Administrator to modify any procedure
or take any other action.''.
SEC. 4126. CLARIFICATION TO EFFECTIVE DATE FOR REGIONAL STANDARDS.
Section 325(o)(6)(E)(ii) of the Energy Policy and Conservation Act
(42 U.S.C. 6295(o)(6)(E)(ii)) is amended by striking ``installed'' and
inserting ``manufactured or imported into the United States''.
SEC. 4127. INTERNET OF THINGS REPORT.
The Secretary of Energy shall, not later than 18 months after the
date of enactment of this Act, report to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate on the efforts made to take
advantage of, and promote, the utilization of advanced technologies
such as Internet of Things end-to-end platform solutions to provide
real-time actionable analytics and enable predictive maintenance and
asset management to improve energy efficiency wherever feasible. In
doing so, the Secretary shall look to encourage and utilize Internet of
Things energy management solutions that have security tightly
integrated into the hardware and software from the outset. The
Secretary shall also encourage the use of Internet of Things solutions
that enable seamless connectivity and that are interoperable, open
standards-based, and built on a repeatable foundation for ease of
scalability.
CHAPTER 3--ENERGY PERFORMANCE CONTRACTING
SEC. 4131. USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL
BUILDINGS.
(a) Reports.--Section 548(b) of the National Energy Conservation
Policy Act (42 U.S.C. 8258(b)) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(5) the status of each agency's energy savings performance
contracts and utility energy service contracts, the investment
value of such contracts, the guaranteed energy savings for the
previous year as compared to the actual energy savings for the
previous year, the plan for entering into such contracts in the
coming year, and information explaining why any previously
submitted plans for such contracts were not implemented.''.
(b) Federal Energy Management Definitions.--Section 551(4) of the
National Energy Conservation Policy Act (42 U.S.C. 8259(4)) is amended
by striking ``or retrofit activities'' and inserting ``retrofit
activities, or energy consuming devices and required support
structures''.
(c) Authority To Enter Into Contracts.--Section 801(a)(2)(F) of the
National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)(F)) is
amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking the period at the end and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iii) limit the recognition of operation
and maintenance savings associated with systems
modernized or replaced with the implementation
of energy conservation measures, water
conservation measures, or any series of energy
conservation measures and water conservation
measures.''.
(d) Miscellaneous Authority.--Section 801(a)(2) of the National
Energy Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding
at the end the following:
``(H) Miscellaneous authority.--Notwithstanding any
other provision of law, a Federal agency may sell or
transfer energy savings and apply the proceeds of such
sale or transfer to fund a contract under this
title.''.
(e) Payment of Costs.--Section 802 of the National Energy
Conservation Policy Act (42 U.S.C. 8287a) is amended by striking ``(and
related operation and maintenance expenses)'' and inserting ``,
including related operations and maintenance expenses''.
(f) Energy Savings Performance Contracts Definitions.--Section 804(2)
of the National Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is
amended--
(1) in subparagraph (A), by striking ``federally owned
building or buildings or other federally owned facilities'' and
inserting ``Federal building (as defined in section 551 (42
U.S.C. 8259))'' each place it appears;
(2) in subparagraph (C), by striking ``; and'' and inserting
a semicolon;
(3) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(4) by adding at the end the following new subparagraphs:
``(E) the use, sale, or transfer of energy
incentives, rebates, or credits (including renewable
energy credits) from Federal, State, or local
governments or utilities; and
``(F) any revenue generated from a reduction in
energy or water use, more efficient waste recycling, or
additional energy generated from more efficient
equipment.''.
CHAPTER 4--SCHOOL BUILDINGS
SEC. 4141. COORDINATION OF ENERGY RETROFITTING ASSISTANCE FOR SCHOOLS.
Section 392 of the Energy Policy and Conservation Act (42 U.S.C.
6371a) is amended by adding at the end the following:
``(e) Coordination of Energy Retrofitting Assistance for Schools.--
``(1) Definition of school.--Notwithstanding section 391(6),
for the purposes of this subsection, the term `school' means--
``(A) 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));
``(B) an institution of higher education (as defined
in section 102(a) of the Higher Education Act of 1965
(20 U.S.C. 1002(a)));
``(C) a school of the defense dependents' education
system under the Defense Dependents' Education Act of
1978 (20 U.S.C. 921 et seq.) or established under
section 2164 of title 10, United States Code;
``(D) a school operated by the Bureau of Indian
Affairs;
``(E) a tribally controlled school (as defined in
section 5212 of the Tribally Controlled Schools Act of
1988 (25 U.S.C. 2511)); and
``(F) a Tribal College or University (as defined in
section 316(b) of the Higher Education Act of 1965 (20
U.S.C. 1059c(b))).
``(2) Establishment of clearinghouse.--The Secretary, acting
through the Office of Energy Efficiency and Renewable Energy,
shall establish a clearinghouse to disseminate information
regarding available Federal programs and financing mechanisms
that may be used to help initiate, develop, and finance energy
efficiency, distributed generation, and energy retrofitting
projects for schools.
``(3) Requirements.--In carrying out paragraph (2), the
Secretary shall--
``(A) consult with appropriate Federal agencies to
develop a list of Federal programs and financing
mechanisms that are, or may be, used for the purposes
described in paragraph (2); and
``(B) coordinate with appropriate Federal agencies to
develop a collaborative education and outreach effort
to streamline communications and promote available
Federal programs and financing mechanisms described in
subparagraph (A), which may include the development and
maintenance of a single online resource that includes
contact information for relevant technical assistance
in the Office of Energy Efficiency and Renewable Energy
that States, local education agencies, and schools may
use to effectively access and use such Federal programs
and financing mechanisms.''.
CHAPTER 5--BUILDING ENERGY CODES
SEC. 4151. GREATER ENERGY EFFICIENCY IN BUILDING CODES.
(a) Definitions.--Section 303 of the Energy Conservation and
Production Act (42 U.S.C. 6832), as amended by section 4116, is further
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 or standard
developed and updated through a consensus process among
interested persons, such as the IECC or ASHRAE Standard 90.1 or
a code used by other appropriate organizations regarding which
the Secretary has issued a determination that buildings subject
to it would achieve greater energy efficiency than under a
previously developed code.''; and
(2) by adding at the end the following:
``(18) ASHRAE standard 90.1.--The term `ASHRAE Standard 90.1'
means the American Society of Heating, Refrigerating and Air-
Conditioning Engineers ANSI/ASHRAE/IES Standard 90/1 Energy
Standard for Buildings Except Low-Rise Residential Buildings.
``(19) Cost-effective.--The term `cost-effective' means
having a simple payback of 10 years or less.
``(20) IECC.--The term `IECC' means the International Energy
Conservation Code as published by the International Code
Council.
``(21) 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).
``(22) Simple payback.--The term `simple payback' means the
time in years that is required for energy savings to exceed the
incremental first cost of a new requirement or code.
``(23) Technically feasible.--The term `technically feasible'
means capable of being achieved, based on widely available
appliances, equipment, technologies, materials, and
construction practices.''.
(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 provide technical assistance,
as described in subsection (e), for the purposes of--
``(1) implementation of building energy codes by States,
Indian tribes, and, as appropriate, by local governments, that
are technically feasible and cost-effective; and
``(2) supporting full compliance with the State, tribal, 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 3 years after the
date on which a model building energy code is
published, 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 statement 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 most recently
published 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 3 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);
``(B) determine whether the certification submitted
by the State or Indian tribe, respectively, is
complete; and
``(C) if the requirements of subparagraph (B) are
satisfied, validate the certification.
``(3) Limitation.--Nothing in this section shall be
interpreted to require a State or Indian tribe to adopt any
building code or provision within a code.
``(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 or Indian tribe, respectively, has--
``(i) achieved full compliance under
paragraph (3) with the applicable certified
State or 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 or 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.
``(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate of
compliance based on--
``(A) 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;
``(B) determine whether the certification submitted
by the State or Indian tribe is complete; and
``(C) if the requirements of subparagraph (B) are
satisfied, validate the certification.
``(6) Limitation.--Nothing in this section shall be
interpreted to require a State or Indian tribe to adopt any
building code or provision within a code.
``(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
the status of the State or Indian tribe with respect to meeting
the requirements and submitting the certification.
``(2) State sovereignty.--Nothing in this section shall be
interpreted to require a State or Indian tribe to adopt any
building code or provision within a code.
``(3) Local government.--In any State or Indian tribe for
which the Secretary has not validated a certification under
subsection (b) or (c), a local government may be eligible for
Federal support by meeting the certification requirements of
subsections (b) and (c).
``(4) Annual reports by secretary.--
``(A) In general.--The Secretary shall annually
submit to Congress, and publish in the Federal
Register, a report on--
``(i) the status of model building energy
codes;
``(ii) the status of code adoption and
compliance in the States and Indian tribes;
``(iii) implementation of this section; and
``(iv) improvements in energy savings over
time as a result of the targets established
under section 307(b)(2).
``(B) Impacts.--The report shall include estimates of
impacts of past action under this section, and
potential impacts of further action, on--
``(i) upfront financial and construction
costs, cost benefits and returns (using a
return on 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.--
``(1) In general.--The Secretary shall, upon request, provide
technical assistance to States and Indian tribes to implement
the goals and requirements of this section--
``(A) to implement State residential and commercial
building energy codes; and
``(B) to document the rate of compliance with a
building energy code.
``(2) Technical assistance.--The assistance shall include, as
requested by the State or Indian tribe, technical assistance
in--
``(A) evaluating the energy savings of building
energy codes;
``(B) assessing the economic considerations,
referenced in section 307(b)(4), of implementing
building energy codes;
``(C) building energy analysis and design tools;
``(D) energy simulation models;
``(E) building demonstrations;
``(F) developing the 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; and
``(G) complying with a performance-based pathway
referenced in the model code.
``(3) Exclusion.--For purposes of this section, `technical
assistance' shall not include actions that promote or
discourage the adoption of a particular building energy code,
code provision, or energy savings target to a State or Indian
tribe.
``(4) Information quality and transparency.--For purposes of
this section, information provided by the Secretary, attendant
to any technical assistance provided to a State or Indian
tribe, is `influential information' and shall satisfy the
guidelines established by the Office of Management and Budget
and published at 67 Federal Register 8,452 (Feb. 22, 2002).
``(f) Federal Support.--
``(1) In general.--The Secretary shall provide support to
States and Indian tribes--
``(A) to implement the reporting requirements of this
section; and
``(B) to 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.
``(2) Exclusion.--Support shall not be given to support
adoption and implementation of model building energy codes for
which the Secretary has made a determination under section
307(g)(1)(C) that the code is not cost-effective.
``(3) Training.--Support shall be offered to States to train
State and local building code officials to implement and
enforce codes described in paragraph (1)(B).
``(4) Local governments.--States may work under this
subsection with local governments that implement and enforce
codes described in paragraph (1)(B).
``(g) Voluntary Programs To Exceed Model Building Energy Code.--
``(1) In general.--The Secretary shall provide technical
assistance, as described in subsection (e), for the development
of voluntary programs that exceed the model building energy
codes for residential and commercial buildings for use as--
``(A) voluntary incentive programs adopted by local,
tribal, or State governments; and
``(B) nonbinding guidelines for energy-efficient
building design.
``(2) Targets.--The voluntary programs described in paragraph
(1) 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, up to 3 to 6 years in advance of the target
years.
``(h) Studies.--
``(1) GAO study.--
``(A) In general.--The Comptroller General of the
United States shall conduct a study of the impacts of
updating the national model building energy codes for
residential and commercial buildings. In conducting the
study, the Comptroller General shall consider and
report, at a minimum--
``(i) the actual energy consumption savings
stemming from updated energy codes compared to
the energy consumption savings predicted during
code development;
``(ii) the actual consumer cost savings
stemming from updated energy codes compared to
predicted consumer cost savings; and
``(iii) an accounting of expenditures of the
Federal funds under each program authorized by
this title.
``(B) Report to congress.--Not later than 3 years
after the date of enactment of the North American
Energy Security and Infrastructure Act of 2015, the
Comptroller General of the United States shall submit a
report to the Committee on Energy and Natural Resources
of the Senate and the Committee on Energy and Commerce
of the House of Representatives including the study
findings and conclusions.
``(2) Feasibility study.--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--
``(A) 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;
``(B) code procedures to incorporate a ten-year
payback, not just first-year energy use, in trade-offs
and performance calculations; and
``(C) legislative options for increasing energy
savings from building energy codes, including
additional incentives for effective State and local
verification of compliance with and enforcement of a
code.
``(3) Energy data in multitenant buildings.--The Secretary,
in consultation with appropriate representatives of the
utility, utility regulatory, building ownership, and other
stakeholders, shall--
``(A) undertake a study of best practices regarding
delivery of aggregated energy consumption information
to owners and managers of residential and commercial
buildings with multiple tenants and uses; and
``(B) consider the development of a memorandum of
understanding between and among affected stakeholders
to reduce barriers to the delivery of aggregated energy
consumption information to such owners and managers.
``(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) Funding Limitations.--No Federal funds shall be--
``(1) used to support actions by the Secretary, or States, to
promote or discourage the adoption of a particular building
energy code, code provision, or energy saving target to a State
or Indian tribe; or
``(2) provided to private third parties or non-governmental
organizations to engage in such activities.''.
(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'' in subsections (a)(2)(B)
and (b) and inserting ``model building energy code''.
(d) Model Building Energy Codes.--
(1) Amendment.--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 provide technical assistance,
as described in subsection (c), for updating of model building energy
codes.
``(b) Targets.--
``(1) In general.--The Secretary shall provide technical
assistance, for updating the model building energy codes.
``(2) Targets.--
``(A) In general.--The Secretary shall provide
technical assistance to States, Indian tribes, local
governments, nationally recognized code and standards
developers, and other interested parties for updating
of model building energy codes by establishing one or
more aggregate energy savings targets through
rulemaking in accordance with section 553 of title 5,
United States Code, to achieve the purposes of this
section.
``(B) Separate targets.--Separate targets may be
established for commercial and residential buildings.
``(C) Baselines.--The baseline for updating model
building energy codes shall be the 2009 IECC for
residential buildings and ASHRAE Standard 90.1-2010 for
commercial buildings.
``(D) Specific years.--
``(i) In general.--Targets for specific years
shall be established and revised by the
Secretary through rulemaking in accordance with
section 553 of title 5, United States Code, and
coordinated with nationally recognized code and
standards developers at a level that--
``(I) is at the maximum level of
energy efficiency that is technically
feasible and cost effective, while
accounting for the economic
considerations under paragraph (4); and
``(II) 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.
``(E) 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) for any indirect economic
effect on small entities that is reasonably foreseeable
and a result of such rule.
``(3) Appliance standards and other factors affecting
building energy use.--In establishing energy savings 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 and water heating systems;
``(D) building management systems and smart grid
technologies to reduce energy use; and
``(E) other technologies, practices, and building
systems regarding building plug load and other energy
uses.
In developing and adjusting the targets, the Secretary shall
use climate zone weighted averages for equipment efficiency for
heating, cooling, ventilation, and water heating systems, using
equipment that is actually installed.
``(4) Economic considerations.--In establishing and revising
energy savings 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, by conducting a
return on investment analysis, using a simple payback
methodology over a 3-, 5-, and 7-year period. The Secretary
shall not propose or provide technical or financial assistance
for any code, provision in the code, or energy target, or
amendment thereto, that has a payback greater than 10 years.
``(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) Technical assistance.--The assistance shall include, as
requested by the organizations, technical assistance in--
``(A) evaluating the energy savings of building
energy codes;
``(B) assessing the economic considerations, under
subsection (b)(4), of code or standards proposals or
revisions;
``(C) building energy analysis and design tools;
``(D) energy simulation models;
``(E) building demonstrations;
``(F) 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;
``(G) developing a performance-based pathway for
compliance;
``(H) developing model building energy codes by
Indian tribes in accordance with tribal law; and
``(I) code development meetings, including through
direct Federal employee participation in committee
meetings, hearings and online communication, voting,
and presenting research and technical or economic
analyses during such meetings.
``(3) Exclusion.--Except as provided in paragraph (2)(I), for
purposes of this section, `technical assistance' shall not
include actions that promote or discourage the adoption of a
particular building energy code, code provision, or energy
savings target.
``(4) Information quality and transparency.--For purposes of
this section, information provided by the Secretary, attendant
to development of any energy savings targets, is influential
information and shall satisfy the guidelines established by the
Office of Management and Budget and published at 67 Federal
Register 8,452 (Feb. 22, 2002).
``(d) Amendment Proposals.--
``(1) In general.--The Secretary may submit timely model
building energy code amendment proposals that are technically
feasible, cost-effective, and technology-neutral 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).
``(2) Process and factors.--All amendment proposals submitted
by the Secretary shall be published in the Federal Register and
made available on the Department of Energy website 90 days
prior to any submittal to a code development body, and shall be
subject to a public comment period of not less than 60 days.
Information provided by the Secretary, attendant to submission
of any amendment proposals, is influential information and
shall satisfy the guidelines established by the Office of
Management and Budget and published at 67 Federal Register
8,452 (Feb. 22, 2002). When calculating the costs and benefits
of an amendment, the Secretary shall use climate zone weighted
averages for equipment efficiency for heating, cooling,
ventilation, and water heating systems, using equipment that is
actually installed.
``(e) 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.
``(f) Methodology Development.--The Secretary shall establish a
methodology for evaluating cost effectiveness of energy code changes in
multifamily buildings that incorporates economic parameters
representative of typical multifamily buildings.
``(g) 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--
``(A) improves energy efficiency in buildings
compared to the existing IECC or ASHRAE Standard 90.1,
as applicable;
``(B) meets the applicable targets under subsection
(b)(2); and
``(C) is technically feasible and cost-effective.
``(2) Codes or standards not meeting criteria.--
``(A) In general.--If the Secretary makes a
preliminary determination under paragraph (1)(B) that a
revised IECC or ASHRAE Standard 90.1 does not meet the
targets established under subsection (b)(2), is not
technically feasible, or is not cost-effective, the
Secretary may at the same time provide technical
assistance, as described in subsection (c), to the
International Code Council or ASHRAE, as applicable,
with proposed changes that would result in a model
building energy code or standard that meets the
criteria, and with supporting evidence. Proposed
changes submitted by the Secretary shall be published
in the Federal Register and made available on the
Department of Energy website 90 days prior to any
submittal to a code development body, and shall be
subject to a public comment period of not less than 60
days. Information provided by the Secretary, attendant
to submission of any amendment proposals, is
influential information and shall satisfy the
guidelines established by the Office of Management and
Budget and published at 67 Federal Register 8,452 (Feb.
22, 2002).
``(B) Incorporation of changes.--
``(i) In general.--On receipt of the
technical assistance, as described in
subsection (c), the International Code Council
or ASHRAE, as applicable, shall, prior to the
Secretary making a final determination under
paragraph (1), have an additional 270 days to
accept or reject the proposed changes made by
the Secretary to the model building energy code
or standard.
``(ii) Final determination.--A final
determination under paragraph (1) shall be on
the final revised model building energy code or
standard.
``(h) Administration.--In carrying out this section, the Secretary
shall--
``(1) publish notice of targets, amendment proposals 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;
``(2) provide an opportunity for public comment on targets
and supporting analysis and determinations under this section,
in accordance with section 553 of title 5, United States Code;
and
``(3) provide an opportunity for public comment on amendment
proposals.
``(i) Voluntary Codes and Standards.--Not withstanding any other
provision of this section, any model building code or standard
established under this section shall not be binding on a State, local
government, or Indian tribe as a matter of Federal law.''.
(2) Conforming amendment.--The item relating to section 307
in the table of contents for the Energy Conservation and
Production Act is amended to read as follows:
``Sec. 307. Support for model building energy codes.''.
SEC. 4152. VOLUNTARY NATURE OF BUILDING ASSET RATING PROGRAM.
(a) In General.--Any program of the Secretary of Energy that may
enable the owner of a commercial building or a residential building to
obtain a rating, score, or label regarding the actual or anticipated
energy usage or performance of a building shall be made available on a
voluntary, optional, and market-driven basis.
(b) Disclaimer as to Regulatory Intent.--Information disseminated by
the Secretary of Energy regarding the program described in subsection
(a), including any information made available by the Secretary on a
website, shall include language plainly stating that such program is
not developed or intended to be the basis for a regulatory program by a
Federal, State, local, or municipal government body.
CHAPTER 6--EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS
SEC. 4161. MODIFYING PRODUCT DEFINITIONS.
(a) Authority To Modify Definitions.--
(1) Covered products.--Section 322 of the Energy Policy and
Conservation Act (42 U.S.C. 6292) is amended by adding at the
end the following:
``(c) Modifying Definitions of Covered Products.--
``(1) In general.--For any covered product for which a
definition is provided in section 321, the Secretary may, by
rule, unless prohibited herein, modify such definition in order
to--
``(A) address significant changes in the product or
the market occurring since the definition was
established; and
``(B) better enable improvements in the energy
efficiency of the product as part of an energy using
system.
``(2) Antibacksliding exemption.--Section 325(o)(1) shall not
apply to adjustments to covered product definitions made
pursuant to this subsection.
``(3) Procedure for modifying definition.--
``(A) In general.--Notice of any adjustment to the
definition of a covered product and an explanation of
the reasons therefor shall be published in the Federal
Register and opportunity provided for public comment.
``(B) Consensus required.--Any amendment to the
definition of a covered product under this subsection
must have consensus support, as reflected in--
``(i) the outcome of negotiations conducted
in accordance with the subchapter III of
chapter 5 of title 5, United States Code
(commonly known as the `Negotiated Rulemaking
Act of 1990'); or
``(ii) the Secretary's receipt of a statement
that is submitted jointly by interested persons
that are fairly representative of relevant
points of view (including representatives of
manufacturers of covered products, States, and
efficiency advocates), as determined by the
Secretary, which contains a recommended
modified definition for a covered product.
``(4) Effect of a modified definition.--
``(A) In general.--For any type or class of consumer
product which becomes a covered product pursuant to
this subsection--
``(i) the Secretary may establish test
procedures for such type or class of covered
product pursuant to section 323 and energy
conservation standards pursuant to section
325(l);
``(ii) the Commission may prescribe labeling
rules pursuant to section 324 if the Commission
determines that labeling in accordance with
that section is technologically and
economically feasible and likely to assist
consumers in making purchasing decisions;
``(iii) section 327 shall begin to apply to
such type or class of covered product in
accordance with section 325(ii)(1); and
``(iv) standards previously promulgated under
section 325 shall not apply to such type or
class of product.
``(B) Applicability.--For any type or class of
consumer product which ceases to be a covered product
pursuant to this subsection, the provisions of this
part shall no longer apply to the type or class of
consumer product.''.
(2) Covered equipment.--Section 341 of the Energy Policy and
Conservation Act (42 U.S.C. 6312) is amended by adding at the
end the following:
``(d) Modifying Definitions of Covered Equipment.--
``(1) In general.--For any covered equipment for which a
definition is provided in section 340, the Secretary may, by
rule, unless prohibited herein, modify such definition in order
to--
``(A) address significant changes in the product or
the market occurring since the definition was
established; and
``(B) better enable improvements in the energy
efficiency of the equipment as part of an energy using
system.
``(2) Antibacksliding exemption.--Section 325(o)(1) shall not
apply to adjustments to covered equipment definitions made
pursuant to this subsection.
``(3) Procedure for modifying definition.--
``(A) In general.--Notice of any adjustment to the
definition of a type of covered equipment and an
explanation of the reasons therefor shall be published
in the Federal Register and opportunity provided for
public comment.
``(B) Consensus required.--Any amendment to the
definition of a type of covered equipment under this
subsection must have consensus support, as reflected
in--
``(i) the outcome of negotiations conducted
in accordance with the subchapter III of
chapter 5 of title 5, United States Code
(commonly known as the `Negotiated Rulemaking
Act of 1990'); or
``(ii) the Secretary's receipt of a statement
that is submitted jointly by interested persons
that are fairly representative of relevant
points of view (including representatives of
manufacturers of covered equipment, States, and
efficiency advocates), as determined by the
Secretary, which contains a recommended
modified definition for a type of covered
equipment.
``(4) Effect of a modified definition.--
``(A) For any type or class of equipment which
becomes covered equipment pursuant to this subsection--
``(i) the Secretary may establish test
procedures for such type or class of covered
equipment pursuant to section 343 and energy
conservation standards pursuant to section
325(l);
``(ii) the Secretary may prescribe labeling
rules pursuant to section 344 if the Secretary
determines that labeling in accordance with
that section is technologically and
economically feasible and likely to assist
purchasers in making purchasing decisions;
``(iii) section 327 shall begin to apply to
such type or class of covered equipment in
accordance with section 325(ii)(1); and
``(iv) standards previously promulgated under
section 325, 342, or 346 shall not apply to
such type or class of covered equipment.
``(B) For any type or class of equipment which ceases
to be covered equipment pursuant to this subsection the
provisions of this part shall no longer apply to the
type or class of equipment.''.
(b) Conforming Amendments Providing for Judicial Review.--
(1) Section 336 of the Energy Policy and Conservation Act (42
U.S.C. 6306) is amended by striking ``section 323,'' each place
it appears and inserting ``section 322, 323,''; and
(2) Section 345(a)(1) of the Energy Policy and Conservation
Act (42 U.S.C. 6316(a)(1)) is amended to read as follows:
``(1) the references to sections 322, 323, 324, and 325 of
this Act shall be considered as references to sections 341,
343, 344, and 342 of this Act, respectively;''.
SEC. 4162. CLARIFYING RULEMAKING PROCEDURES.
(a) Covered Products.--Section 325(p) of the Energy Policy and
Conservation Act (42 U.S.C. 6295(p)) is amended--
(1) by redesignating paragraphs (1), (2), (3), and (4) as
paragraphs (2), (3), (5), and (6), respectively;
(2) by inserting before paragraph (2) (as so redesignated by
paragraph (1) of this subsection) the following:
``(1) The Secretary shall provide an opportunity for public
input prior to the issuance of a proposed rule, seeking
information--
``(A) identifying and commenting on design options;
``(B) on the existence of and opportunities for
voluntary nonregulatory actions; and
``(C) identifying significant subgroups of consumers
and manufacturers that merit analysis.'';
(3) in paragraph (3) (as so redesignated by paragraph (1) of
this subsection)--
(A) in subparagraph (C), by striking ``and'' after
``adequate;'';
(B) in subparagraph (D), by striking ``standard.''
and inserting ``standard;''; and
(C) by adding at the end the following new
subparagraphs:
``(E) whether the technical and economic analytical
assumptions, methods, and models used to justify the
standard to be prescribed are--
``(i) justified; and
``(ii) available and accessible for public
review, analysis, and use; and
``(F) the cumulative regulatory impacts on the
manufacturers of the product, taking into account--
``(i) other government standards affecting
energy use; and
``(ii) other energy conservation standards
affecting the same manufacturers.''; and
(4) by inserting after paragraph (3) (as so redesignated by
paragraph (1) of this subsection) the following:
``(4) Restriction on test procedure amendments.--
``(A) In general.--Any proposed energy conservation
standards rule shall be based on the final test
procedure which shall be used to determine compliance,
and the public comment period on the proposed standards
shall conclude no sooner than 180 days after the date
of publication of a final rule revising the test
procedure.
``(B) Exception.--The Secretary may propose or
prescribe an amendment to the test procedures issued
pursuant to section 323 for any type or class of
covered product after the issuance of a notice of
proposed rulemaking to prescribe an amended or new
energy conservation standard for that type or class of
covered product, but before the issuance of a final
rule prescribing any such standard, if--
``(i) the amendments to the test procedure
have consensus support achieved through a
rulemaking conducted in accordance with the
subchapter III of chapter 5 of title 5, United
States Code (commonly known as the `Negotiated
Rulemaking Act of 1990'); or
``(ii) the Secretary receives a statement
that is submitted jointly by interested persons
that are fairly representative of relevant
points of view (including representatives of
manufacturers of the type or class of covered
product, States, and efficiency advocates), as
determined by the Secretary, which contains a
recommendation that a supplemental notice of
proposed rulemaking is not necessary for the
type or class of covered product.''.
(b) Conforming Amendment.--Section 345(b)(1) of the Energy Policy and
Conservation Act (42 U.S.C. 6316(b)(1)) is amended by striking
``section 325(p)(4),'' and inserting ``section 325(p)(3), (4), and
(6),''.
CHAPTER 7--ENERGY AND WATER EFFICIENCY
SEC. 4171. SMART ENERGY AND WATER EFFICIENCY PILOT PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity'' means--
(A) a utility;
(B) a municipality;
(C) a water district; and
(D) any other authority that provides water,
wastewater, or water reuse services.
(2) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
(3) Smart energy and water efficiency pilot program.--The
term ``smart energy and water efficiency pilot program'' or
``pilot program'' means the pilot program established under
subsection (b).
(b) Smart Energy and Water Efficiency Pilot Program.--
(1) In general.--The Secretary shall establish and carry out
a smart energy and water efficiency management pilot program in
accordance with this section.
(2) Purpose.--The purpose of the smart energy and water
efficiency pilot program is to award grants to eligible
entities to demonstrate advanced and innovative technology-
based solutions that will--
(A) increase and improve the energy efficiency of
water, wastewater, and water reuse systems to help
communities across the United States make significant
progress in conserving water, saving energy, and
reducing costs;
(B) support the implementation of innovative
processes and the installation of advanced automated
systems that provide real-time data on energy and
water; and
(C) improve energy and water conservation, water
quality, and predictive maintenance of energy and water
systems, through the use of Internet-connected
technologies, including sensors, intelligent gateways,
and security embedded in hardware.
(3) Project selection.--
(A) In general.--The Secretary shall make
competitive, merit-reviewed grants under the pilot
program to not less than 3, but not more than 5,
eligible entities.
(B) Selection criteria.--In selecting an eligible
entity to receive a grant under the pilot program, the
Secretary shall consider--
(i) energy and cost savings anticipated to
result from the project;
(ii) the innovative nature, commercial
viability, and reliability of the technology to
be used;
(iii) the degree to which the project
integrates next-generation sensors, software,
hardware, analytics, and management tools;
(iv) the anticipated cost effectiveness of
the pilot project in terms of energy efficiency
savings, water savings or reuse, and
infrastructure costs averted;
(v) whether the technology can be deployed in
a variety of geographic regions and the degree
to which the technology can be implemented on a
smaller or larger scale, including whether the
technology can be implemented by each type of
eligible entity;
(vi) whether the technology has been
successfully deployed elsewhere;
(vii) whether the technology is sourced from
a manufacturer based in the United States; and
(viii) whether the project will be completed
in 5 years or less.
(C) Applications.--
(i) In general.--Subject to clause (ii), an
eligible entity seeking a grant under the pilot
program shall submit to the Secretary an
application at such time, in such manner, and
containing such information as the Secretary
determines to be necessary.
(ii) Contents.--An application under clause
(i) shall, at a minimum, include--
(I) a description of the project;
(II) a description of the technology
to be used in the project;
(III) the anticipated results,
including energy and water savings, of
the project;
(IV) a comprehensive budget for the
project;
(V) the names of the project lead
organization and any partners;
(VI) the number of users to be served
by the project; and
(VII) any other information that the
Secretary determines to be necessary to
complete the review and selection of a
grant recipient.
(4) Administration.--
(A) In general.--Not later than 300 days after the
date of enactment of this Act, the Secretary shall
select grant recipients under this section.
(B) Evaluations.--The Secretary shall annually carry
out an evaluation of each project for which a grant is
provided under this section that--
(i) evaluates the progress and impact of the
project; and
(ii) assesses the degree to which the project
is meeting the goals of the pilot program.
(C) Technical and policy assistance.--On the request
of a grant recipient, the Secretary shall provide
technical and policy assistance to the grant recipient
to carry out the project.
(D) Best practices.--The Secretary shall make
available to the public--
(i) a copy of each evaluation carried out
under subparagraph (B); and
(ii) a description of any best practices
identified by the Secretary as a result of
those evaluations.
(E) Report to congress.--The Secretary shall submit
to Congress a report containing the results of each
evaluation carried out under subparagraph (B).
(c) Funding.--
(1) In general.--To carry out this section, the Secretary
shall use not more than $15,000,000 of amounts made available
to the Secretary.
(2) Prioritization.--In funding activities under this
section, the Secretary shall prioritize funding in the
following manner:
(A) The Secretary shall first use any unobligated
amounts made available to the Secretary to carry out
the activities of the Energy Efficiency and Renewable
Energy Office.
(B) After any amounts described in subparagraph (A)
have been used, the Secretary shall then use any
unobligated amounts (other than those described in
subparagraph (A)) made available to the Secretary.
SEC. 4172. WATERSENSE.
(a) In General.--The Energy Policy and Conservation Act (42 U.S.C.
6201 et seq.) is amended by adding after section 324A the following:
``SEC. 324B. WATERSENSE.
``(a) WaterSense.--
``(1) In general.--There is established within the
Environmental Protection Agency a voluntary program, to be
entitled `WaterSense', to identify water efficient products,
buildings, landscapes, facilities, processes, and services that
sensibly--
``(A) reduce water use;
``(B) reduce the strain on public and community water
systems and wastewater and stormwater infrastructure;
``(C) conserve energy used to pump, heat, transport,
and treat water; and
``(D) preserve water resources for future
generations, through voluntary labeling of, or other
forms of communications about, products, buildings,
landscapes, facilities, processes, and services while
still meeting strict performance criteria.
``(2) Duties.--The Administrator, coordinating as appropriate
with the Secretary of Energy, shall--
``(A) establish--
``(i) a WaterSense label to be used for items
meeting the certification criteria established
in this section; and
``(ii) the procedure, including the methods
and means, by which an item may be certified to
display the WaterSense label;
``(B) conduct a public awareness education campaign
regarding the WaterSense label;
``(C) preserve the integrity of the WaterSense label
by--
``(i) establishing and maintaining feasible
performance criteria so that products,
buildings, landscapes, facilities, processes,
and services labeled with the WaterSense label
perform as well or better than less water-
efficient counterparts;
``(ii) overseeing WaterSense certifications
made by third parties;
``(iii) using testing protocols, from the
appropriate, applicable, and relevant consensus
standards, for the purpose of determining
standards compliance; and
``(iv) auditing the use of the WaterSense
label in the marketplace and preventing cases
of misuse; and
``(D) not more often than every six years, review
and, if appropriate, update WaterSense criteria for the
defined categories of water-efficient product,
building, landscape, process, or service, including--
``(i) providing reasonable notice to
interested parties and the public of any such
changes, including effective dates, and an
explanation of the changes;
``(ii) soliciting comments from interested
parties and the public prior to any such
changes;
``(iii) as appropriate, responding to
comments submitted by interested parties and
the public; and
``(iv) providing an appropriate transition
time prior to the applicable effective date of
any such changes, taking into account the
timing necessary for the manufacture,
marketing, training, and distribution of the
specific water-efficient product, building,
landscape, process, or service category being
addressed.
``(b) Use of Science.--In carrying out this section, and, to the
degree that an agency action is based on science, the Administrator
shall use--
``(1) the best available peer-reviewed science and supporting
studies conducted in accordance with sound and objective
scientific practices; and
``(2) data collected by accepted methods or best available
methods (if the reliability of the method and the nature of the
decision justify use of the data).
``(c) Distinction of Authorities.--In setting or maintaining
standards for Energy Star pursuant to section 324A, and WaterSense
under this section, the Secretary and Administrator shall coordinate to
prevent duplicative or conflicting requirements among the respective
programs.
``(d) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Environmental Protection Agency.
``(2) Feasible.--The term `feasible' means feasible with the
use of the best technology, treatment techniques, and other
means that the Administrator finds, after examination for
efficacy under field conditions and not solely under laboratory
conditions, are available (taking cost into consideration).
``(3) Secretary.--The term `Secretary' means the Secretary of
Energy.
``(4) Water-efficient product, building, landscape, process,
or service.--The term `water-efficient product, building,
landscape, process, or service' means a product, building,
landscape, process, or service for a residence or a commercial
or institutional building, or its landscape, that is rated for
water efficiency and performance, the covered categories of
which are--
``(A) irrigation technologies and services;
``(B) point-of-use water treatment devices;
``(C) plumbing products;
``(D) reuse and recycling technologies;
``(E) landscaping and gardening products, including
moisture control or water enhancing technologies;
``(F) xeriscaping and other landscape conversions
that reduce water use; and
``(G) new water efficient homes certified under the
WaterSense program.''.
(b) Conforming Amendment.--The table of contents for the Energy
Policy and Conservation Act (Public Law 94-163; 42 U.S.C. 6201 et seq.)
is amended by inserting after the item relating to section 324A the
following new item:
``Sec. 324B. WaterSense.''.
Subtitle B--Accountability
CHAPTER 1--MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE
SEC. 4211. FERC OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC
PARTICIPATION.
Section 319 of the Federal Power Act (16 U.S.C. 825q-1) is amended to
read as follows:
``SEC. 319. OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC PARTICIPATION.
``(a) Establishment.--There is established within the Commission an
Office of Compliance Assistance and Public Participation (referred to
in this section as the `Office'). The Office shall be headed by a
Director.
``(b) Duties of Director.--
``(1) In general.--The Director of the Office shall promote
improved compliance with Commission rules and orders by--
``(A) making recommendations to the Commission
regarding--
``(i) the protection of consumers;
``(ii) market integrity and support for the
development of responsible market behavior;
``(iii) the application of Commission rules
and orders in a manner that ensures that--
``(I) rates and charges for, or in
connection with, the transmission or
sale of electric energy subject to the
jurisdiction of the Commission shall be
just and reasonable and not unduly
discriminatory or preferential; and
``(II) markets for such transmission
and sale of electric energy are not
impaired and consumers are not damaged;
and
``(iv) the impact of existing and proposed
Commission rules and orders on small entities,
as defined in section 601 of title 5, United
States Code (commonly known as the Regulatory
Flexibility Act);
``(B) providing entities subject to regulation by the
Commission the opportunity to obtain timely guidance
for compliance with Commission rules and orders; and
``(C) providing information to the Commission and
Congress to inform policy with respect to energy issues
under the jurisdiction of the Commission.
``(2) Reports and guidance.--The Director shall, as the
Director determines appropriate, issue reports and guidance to
the Commission and to entities subject to regulation by the
Commission, regarding market practices, proposing improvements
in Commission monitoring of market practices, and addressing
potential improvements to both industry and Commission
practices.
``(3) Outreach.--The Director shall promote improved
compliance with Commission rules and orders through outreach,
publications, and, where appropriate, direct communication with
entities regulated by the Commission.''.
CHAPTER 2--MARKET REFORMS
SEC. 4221. GAO STUDY ON WHOLESALE ELECTRICITY MARKETS.
(a) Study and Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Energy and Natural Resources of the Senate a report
describing the results of a study of whether and how the current market
rules, practices, and structures of each regional transmission entity
produce rates that are just and reasonable by--
(1) facilitating fuel diversity, the availability of
generation resources during emergency and severe weather
conditions, resource adequacy, and reliability, including the
cost-effective retention and development of needed generation;
(2) promoting the equitable treatment of business models,
including different utility types, the integration of diverse
generation resources, and advanced grid technologies;
(3) identifying and addressing regulatory barriers to entry,
market-distorting incentives, and artificial constraints on
competition;
(4) providing transparency regarding dispatch decisions,
including the need for out-of-market actions and payments, and
the accuracy of day-ahead unit commitments;
(5) facilitating the development of necessary natural gas
pipeline and electric transmission infrastructure;
(6) ensuring fairness and transparency in governance
structures and stakeholder processes, including meaningful
participation by both voting and nonvoting stakeholder
representatives;
(7) ensuring the proper alignment of the energy and
transmission markets by including both energy and financial
transmission rights in the day-ahead markets;
(8) facilitating the ability of load-serving entities to
self-supply their service territory load;
(9) considering, as appropriate, State and local resource
planning; and
(10) mitigating, to the extent practicable, the disruptive
effects of tariff revisions on the economic decisionmaking of
market participants.
(b) Definitions.--In this section:
(1) Load-serving entity.--The term ``load-serving entity''
has the meaning given that term in section 217 of the Federal
Power Act (16 U.S.C. 824q).
(2) Regional transmission entity.--The term ``regional
transmission entity'' means a Regional Transmission
Organization or an Independent System Operator, as such terms
are defined in section 3 of the Federal Power Act (16 U.S.C.
796).
SEC. 4222. CLARIFICATION OF FACILITY MERGER AUTHORIZATION.
Section 203(a)(1)(B) of the Federal Power Act (16 U.S.C.
824b(a)(1)(B)) is amended by striking ``such facilities or any part
thereof'' and inserting ``such facilities, or any part thereof, of a
value in excess of $10,000,000''.
CHAPTER 3--CODE MAINTENANCE
SEC. 4231. REPEAL OF OFF-HIGHWAY MOTOR VEHICLES STUDY.
(a) Repeal.--Part I of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6373) is repealed.
(b) Conforming Amendment.--The table of contents for the Energy
Policy and Conservation Act (Public Law 94-163; 89 Stat. 871) is
amended--
(1) by striking the item relating to part I of title III; and
(2) by striking the item relating to section 385.
SEC. 4232. REPEAL OF METHANOL STUDY.
Section 400EE of the Energy Policy and Conservation Act (42 U.S.C.
6374d) is amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) and (c) as subsections
(a) and (b), respectively.
SEC. 4233. REPEAL OF RESIDENTIAL ENERGY EFFICIENCY STANDARDS STUDY.
(a) Repeal.--Section 253 of the National Energy Conservation Policy
Act (42 U.S.C. 8232) is repealed.
(b) Conforming Amendment.--The table of contents for the National
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is
amended by striking the item relating to section 253.
SEC. 4234. REPEAL OF WEATHERIZATION STUDY.
(a) Repeal.--Section 254 of the National Energy Conservation Policy
Act (42 U.S.C. 8233) is repealed.
(b) Conforming Amendment.--The table of contents for the National
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is
amended by striking the item relating to section 254.
SEC. 4235. REPEAL OF REPORT TO CONGRESS.
(a) Repeal.--Section 273 of the National Energy Conservation Policy
Act (42 U.S.C. 8236b) is repealed.
(b) Conforming Amendment.--The table of contents for the National
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is
amended by striking the item relating to section 273.
SEC. 4236. REPEAL OF REPORT BY GENERAL SERVICES ADMINISTRATION.
(a) Repeal.--Section 154 of the Energy Policy Act of 1992 (42 U.S.C.
8262a) is repealed.
(b) Conforming Amendments.--
(1) The table of contents for the Energy Policy Act of 1992
(Public Law 102-486; 106 Stat. 2776) is amended by striking the
item relating to section 154.
(2) Section 159 of the Energy Policy Act of 1992 (42 U.S.C.
8262e) is amended by striking subsection (c).
SEC. 4237. REPEAL OF INTERGOVERNMENTAL ENERGY MANAGEMENT PLANNING AND
COORDINATION WORKSHOPS.
(a) Repeal.--Section 156 of the Energy Policy Act of 1992 (42 U.S.C.
8262b) is repealed.
(b) Conforming Amendment.--The table of contents for the Energy
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by
striking the item relating to section 156.
SEC. 4238. REPEAL OF INSPECTOR GENERAL AUDIT SURVEY AND PRESIDENT'S
COUNCIL ON INTEGRITY AND EFFICIENCY REPORT TO
CONGRESS.
(a) Repeal.--Section 160 of the Energy Policy Act of 1992 (42 U.S.C.
8262f) is amended by striking the section designation and heading and
all that follows through ``(c) Inspector General Review.--Each
Inspector General'' and inserting the following:
``SEC. 160. INSPECTOR GENERAL REVIEW.
``Each Inspector General''.
(b) Conforming Amendment.--The table of contents for the Energy
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by
striking the item relating to section 160 and inserting the following:
``Sec. 160. Inspector General review.''.
SEC. 4239. REPEAL OF PROCUREMENT AND IDENTIFICATION OF ENERGY EFFICIENT
PRODUCTS PROGRAM.
(a) Repeal.--Section 161 of the Energy Policy Act of 1992 (42 U.S.C.
8262g) is repealed.
(b) Conforming Amendment.--The table of contents for the Energy
Policy Act of 1992 (Public Law 102-486; 106 Stat. 2776) is amended by
striking the item relating to section 161.
SEC. 4240. REPEAL OF NATIONAL ACTION PLAN FOR DEMAND RESPONSE.
(a) Repeal.--Part 5 of title V of the National Energy Conservation
Policy Act (42 U.S.C. 8279) is repealed.
(b) Conforming Amendment.--The table of contents for the National
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206; 121
Stat. 1665) is amended--
(1) by striking the item relating to part 5 of title V; and
(2) by striking the item relating to section 571.
SEC. 4241. REPEAL OF NATIONAL COAL POLICY STUDY.
(a) Repeal.--Section 741 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8451) is repealed.
(b) Conforming Amendment.--The table of contents for the Powerplant
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289)
is amended by striking the item relating to section 741.
SEC. 4242. REPEAL OF STUDY ON COMPLIANCE PROBLEM OF SMALL ELECTRIC
UTILITY SYSTEMS.
(a) Repeal.--Section 744 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8454) is repealed.
(b) Conforming Amendment.--The table of contents for the Powerplant
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289)
is amended by striking the item relating to section 744.
SEC. 4243. REPEAL OF STUDY OF SOCIOECONOMIC IMPACTS OF INCREASED COAL
PRODUCTION AND OTHER ENERGY DEVELOPMENT.
(a) Repeal.--Section 746 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8456) is repealed.
(b) Conforming Amendment.--The table of contents for the Powerplant
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289)
is amended by striking the item relating to section 746.
SEC. 4244. REPEAL OF STUDY OF THE USE OF PETROLEUM AND NATURAL GAS IN
COMBUSTORS.
(a) Repeal.--Section 747 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8457) is repealed.
(b) Conforming Amendment.--The table of contents for the Powerplant
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289)
is amended by striking the item relating to section 747.
SEC. 4245. REPEAL OF SUBMISSION OF REPORTS.
(a) Repeal.--Section 807 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8483) is repealed.
(b) Conforming Amendment.--The table of contents for the Powerplant
and Industrial Fuel Use Act of 1978 (Public Law 95-620; 92 Stat. 3289)
is amended by striking the item relating to section 807.
SEC. 4246. REPEAL OF ELECTRIC UTILITY CONSERVATION PLAN.
(a) Repeal.--Section 808 of the Powerplant and Industrial Fuel Use
Act of 1978 (42 U.S.C. 8484) is repealed.
(b) Conforming Amendments.--
(1) Table of contents.--The table of contents for the
Powerplant and Industrial Fuel Use Act of 1978 (Public Law 95-
620; 92 Stat. 3289) is amended by striking the item relating to
section 808.
(2) Report on implementation.--Section 712 of the Powerplant
and Industrial Fuel Use Act of 1978 (42 U.S.C. 8422) is
amended--
(A) by striking ``(a) Generally.--''; and
(B) by striking subsection (b).
SEC. 4247. TECHNICAL AMENDMENT TO POWERPLANT AND INDUSTRIAL FUEL USE
ACT OF 1978.
The table of contents for the Powerplant and Industrial Fuel Use Act
of 1978 (Public Law 95-620; 92 Stat. 3289) is amended by striking the
item relating to section 742.
SEC. 4248. EMERGENCY ENERGY CONSERVATION REPEALS.
(a) Repeals.--
(1) Section 201 of the Emergency Energy Conservation Act of
1979 (42 U.S.C. 8501) is amended--
(A) in the section heading, by striking ``findings
and'';
(B) by striking subsection (a); and
(C) by striking ``(b) Purposes.--''.
(2) Section 221 of the Emergency Energy Conservation Act of
1979 (42 U.S.C. 8521) is repealed.
(3) Section 222 of the Emergency Energy Conservation Act of
1979 (42 U.S.C. 8522) is repealed.
(4) Section 241 of the Emergency Energy Conservation Act of
1979 (42 U.S.C. 8531) is repealed.
(b) Conforming Amendment.--The table of contents for the Emergency
Energy Conservation Act of 1979 (Public Law 96-102; 93 Stat. 749) is
amended--
(1) by striking the item relating to section 201 and
inserting the following:
``Sec. 201. Purposes.''; and
(2) by striking the items relating to sections 221, 222, and
241.
SEC. 4249. REPEAL OF STATE UTILITY REGULATORY ASSISTANCE.
(a) Repeal.--Section 207 of the Energy Conservation and Production
Act (42 U.S.C. 6807) is repealed.
(b) Conforming Amendment.--The table of contents for the Energy
Conservation and Production Act (Public Law 94-385; 90 Stat. 1125) is
amended by striking the item relating to section 207.
SEC. 4250. REPEAL OF SURVEY OF ENERGY SAVING POTENTIAL.
(a) Repeal.--Section 550 of the National Energy Conservation Policy
Act (42 U.S.C. 8258b) is repealed.
(b) Conforming Amendments.--
(1) The table of contents for the National Energy
Conservation Policy Act (Public Law 95-619; 92 Stat. 3206; 106
Stat. 2851) is amended by striking the item relating to section
550.
(2) Section 543(d)(2) of the National Energy Conservation
Policy Act (42 U.S.C. 8253(d)(2)) is amended by striking ``,
incorporating any relevant information obtained from the survey
conducted pursuant to section 550''.
SEC. 4251. REPEAL OF PHOTOVOLTAIC ENERGY PROGRAM.
(a) Repeal.--Part 4 of title V of the National Energy Conservation
Policy Act (42 U.S.C. 8271 et seq.) is repealed.
(b) Conforming Amendments.--The table of contents for the National
Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is
amended--
(1) by striking the item relating to part 4 of title V; and
(2) by striking the items relating to sections 561 through
570.
SEC. 4252. REPEAL OF ENERGY AUDITOR TRAINING AND CERTIFICATION.
(a) Repeal.--Subtitle F of title V of the Energy Security Act (42
U.S.C. 8285 et seq.) is repealed.
(b) Conforming Amendment.--The table of contents for the Energy
Security Act (Public Law 96-294; 94 Stat. 611) is amended by striking
the items relating to subtitle F of title V.
CHAPTER 4--USE OF EXISTING FUNDS
SEC. 4261. USE OF EXISTING FUNDS.
Amounts required for carrying out this Act, other than section 1201,
shall be derived from amounts appropriated under authority provided by
previously enacted law.
Purpose and Summary
H.R. 8, the North American Energy Security and
Infrastructure Act of 2015, was introduced by Representative
Fred Upton on September 16, 2015. The legislation would advance
energy infrastructure development, modernization, and
protection; foster a 21st century energy and manufacturing
workforce; bolster America's energy security and diplomacy; and
promote energy efficiency and government accountability.
Background and Need for Legislation
A LEGISLATIVE FRAMEWORK TO MODERNIZE U.S. ENERGY INFRASTRUCTURE AND
CAPITALIZE ON THE U.S. ENERGY RENAISSANCE
America is experiencing an energy renaissance. Modern
technology and American ingenuity have unlocked a wealth of
energy resources, and with the right policies, this energy
abundance can help fuel the nation's economy for years to come.
H.R. 8 seeks to maximize the nation's energy potential,
strengthen energy security, and keep prices affordable. The
legislation establishes a framework for a targeted, solutions-
based energy package. Specifically, H.R. 8 focuses on four
general areas:
Modernizing Infrastructure. America faces different energy
challenges today than it did a decade ago. Chief among them is
a lack of modern energy infrastructure to carry abundant new
supplies of energy to consumers. These challenges threaten
energy reliability and affordability. For example, delays and
red tape in the permitting process often discourage the safest,
most efficient and reliable, and often most environmentally
sound, modes of energy delivery. The nation's electricity
sector also continues to evolve. Its challenges include
changing market dynamics and technological advances, aggressive
environmental regulations, increased integration of
intermittent resources, and a growing number of grid security
threats. At the same time, big data and new energy analytics
technologies offer novel products and services that can improve
efficiency while helping utilities and software companies meet
consumer needs.
21st Century Energy Workforce. An educated, sustainable
energy and manufacturing workforce is vital to continued
economic growth, particularly as the U.S. seeks to modernize
and update its energy infrastructure. In addition to having a
workforce capable of addressing 21st century challenges, there
is also a need to ensure that workforce opportunities are
accessible to all Americans, including under-represented
minority and low-income communities.
Energy Diplomacy for a Changing World. There are
significant geopolitical benefits to be gained from the North
American energy revolution, including making North America a
global energy leader and making the U.S. and its allies less
dependent on OPEC countries and other unstable regions of the
world.
Efficiency and Accountability. Harnessing new technologies
and private sector innovation for more efficient energy usage
in households, businesses, and the Federal government is a
critical component of any national energy policy. There are
many methods available to improve efficiency that do not
require mandates or taxpayer spending, including the
establishment of voluntary programs, guidelines, and improved
data gathering and information. H.R. 8 promotes simple and
affordable methods to address energy demand and bring down
costs for consumers and taxpayers. It also seeks to reduce
government waste and prioritize budget dollars in existing
programs, as well as provide important regulatory relief for
U.S. manufacturers from burdensome Federal efficiency mandates.
OVERVIEW OF H.R. 8, NORTH AMERICAN ENERGY SECURITY AND INFRASTRUCTURE
ACT OF 2015
Modernizing natural gas pipeline infrastructure. In recent
years, technological advances have spurred dramatic growth in
domestic production of oil and natural gas. While these
developments have been a significant benefit to the American
economy, further growth and benefits to consumers are
constrained by a lack of adequate infrastructure. Changing
supply and demand patterns have left industrial and residential
consumers, particularly in the Northeast, vulnerable to price
spikes associated with a lack of adequate natural gas pipeline
capacity.
The current Federal and State permitting process for
constructing new natural gas pipelines and modernizing existing
pipelines is a significant impediment to infrastructure
development. Despite increased authority given to the Federal
Energy Regulatory Commission (FERC) under the Energy Policy Act
of 2005 (EPACT), there is evidence that FERC lacks the ability
to enforce agency decisional deadlines related to natural gas
pipeline applications. H.R. 8 will help to alleviate
constraints on natural gas pipeline infrastructure development
by reinforcing FERC's role as the lead agency to coordinate
concurrent permit reviews, establish timelines, and require
transparency in the process.
In addition, H.R. 8 will provide assistance to low income
households in order to offset rate increases resulting from
accelerated replacement of natural gas distribution
infrastructure. The bill also incorporates recommendations of
the National Petroleum Council's 2014 report on enhancing
government and industry emergency preparedness for natural
disasters by enhancing communication mechanisms and leveraging
existing institutional frameworks.\1\
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\1\National Petroleum Council. ``Enhancing Emergency Preparedness
for Natural Disasters.'' December 18, 2014.
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Modernizing and protecting the electricity system. In
addition to the need to modernize and expand the nation's
natural gas infrastructure, ensuring the electric grid is
secure, resilient, and reliable is another top priority.
Changing market dynamics, new regulations, and emerging threats
have created new energy security and reliability challenges.
Disruptions in the delivery of electricity have far-reaching
economic and public health impacts. The U.S. Energy Information
Administration estimates that power outages cost Americans at
least $150 billion annually.\2\ The legislation seeks to meet
today's energy reliability and security challenges with
forward-looking, commonsense solutions, including innovative
and advanced technologies that offer new opportunities to
improve and bolster electric infrastructure.
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\2\U.S. Department of Energy. ``Voices of Experience: Insights into
Advanced Distribution Management Systems.'' February, 2015.
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H.R. 8 would address threats to the electricity system,
including physical and cyber-attack, electromagnetic pulse,
geomagnetic disturbances, severe weather, and seismic events
through enhanced emergency preparedness and utilization of
advanced technologies. For example, the bill requires an
evaluation of the feasibility of storing strategically located
spare large power transformers, which can take up to two years
to construct, that would reduce the vulnerability of the United
States to these threats. In addition, H.R. 8 would provide for
competitive grant programs for States, units of local
government, and Indian tribe economic development entities to
enhance the resilience of the electric grid, improve
preparedness and restoration time to mitigate power
disruptions, and continue delivery of power to facilities
critical to public health and electricity-dependent essential
services.
As the electric grid becomes more reliant on information
technology and digital communications devices, new grid access
points are created, potentially increasing the avenues for
outside attacks. By establishing a voluntary Cyber Sense
program to identify and promote cyber-secure products and
technologies for use in the bulk-power system, the legislation
provides increased certainty that new technologies are secure.
H.R. 8 also provides for voluntary sharing and protection of
critical electric infrastructure information between the
private sector and the Federal government, to work together to
anticipate and address electric grid vulnerabilities.
Modernizing the Strategic Petroleum Reserve. The Strategic
Petroleum Reserve (SPR or Reserve), a Federal stockpile of oil
stored at several underground locations in Texas and Louisiana,
is one of the Nation's most valuable energy security assets;
however, it is in need of life-extension and modernization in
order to continue fulfilling its mission. In the event of a
serious oil supply disruption, the Reserve is designed to
deliver up to 4.4 million barrels of oil per day from its
underground network to salt caverns to refineries where it can
be turned into usable products like gasoline. In its current
state, the Reserve does not meet its designed performance
criteria, jeopardizing U.S. national security.
The SPR currently holds about 695 million barrels of oil or
the equivalent of about 137 days of import protection, while
only ninety days are required to meet the U.S. obligation under
the International Energy Program. Much of the Reserve's
infrastructure is reaching the end of its design life. In fact,
some of the facilities are more than seventy-five years old.
Investment through regular appropriations has not kept pace
with need, and future obligations are challenging in the
current fiscal environment. At any given time, a considerable
volume of oil held within the Reserve is off-line due to
maintenance issues. In addition, ``cavern creep,'' resulting
from normal operations and naturally occurring geologic forces,
eliminates available capacity each year. Compounding the
structural issues with the Reserve's facilities, the shared
distribution system of pipelines and waterway infrastructure
have undergone significant changes since the 1970's, when the
Reserve was created, degrading its ability to protect the U.S.
economy during an emergency.
H.R. 8 directs the Secretary of Energy to develop a
comprehensive study of the optimal size, location, and
composition of the Reserve. H.R. 8 also would authorize a
limited SPR drawdown and sale to provide for the repair and
replacement of the Reserve's facilities, as well as non-Reserve
projects needed to enhance energy security by increasing the
resilience, reliability, safety, and security of energy supply,
transmission, and distribution infrastructure.
Hydropower modernization and development. Hydropower is an
essential component of an ``all of the above'' energy strategy
for the United States. Hydropower resources, including pumped
storage facilities, currently provide over six percent of all
electricity generated in the United States, nearly fifty
percent of all renewable electricity in the United States, and
approximately 100,000 megawatts of electric capacity in the
United States. Tremendous potential exists for new hydropower
development, including facilities at existing infrastructure
such as non-powered dams, new hydropower sites, and emerging
technologies that improve the capture of energy along
irrigation canals, municipal water supply conduits, and other
linear infrastructure.
Despite the inherent benefits of hydropower--energy
security, stability, and reliability; environmental protection
and enhancement; and recreation--the outdated authorization
processes under Part One of the Federal Power Act (FPA),
together with overlapping and duplicative requirements under
other Federal laws, disadvantage hydropower as a cost-
competitive resource. One of the primary impediments to greater
utilization of hydropower resources is the regulatory process,
which has proven costly, time-consuming, and burdensome, even
for small hydropower projects. The regulatory process to
license and construct a hydropower facility remains
considerably longer than the process for other energy
resources. For example, the Integrated Licensing Process
established specifically for hydropower projects is structured
to be completed in five years, while the development timeline
for wind and solar projects can be as short as eighteen to
twenty-four months.
Although centralized decision-making and administration of
non-Federal hydropower has been the intent of the FPA since its
original enactment 95 years ago, weakening of this core
principle over time has resulted in increased consumer costs,
reduced availability of renewable energy, capacity, and
ancillary services provided by hydropower, and lost
opportunities for new hydropower development. Despite the
intentions of the EPACT to require better decision-making and
promote efficiency in the licensing decisions of FERC, the Act
has not accomplished its full purposes due to inefficient
implementation and evasion of its requirements by Federal
resource agencies.
H.R. 8 would expedite the review of hydropower
infrastructure development by reinforcing FERC's role as the
lead agency to coordinate concurrent permit reviews and
establish enforceable timelines, and streamlining licensing
study processes. By requiring FERC to develop a collection of
existing studies and data that could be used to inform
licensing proceedings, H.R. 8 prevents unnecessary, expensive,
and duplicative environmental studies that significantly
prolong the duration of application reviews. The bill also
establishes a focused licensing process for the expeditious
review of license applications for closed loop pumped storage
projects, and of license amendment applications that would
provide a public benefit (e.g., recreation, environmental
enhancement, or increased renewable energy development) with
insignificant or minimal environmental effects. The bill also
would facilitate the development of new hydropower
infrastructure at existing non-powered dams by authorizing FERC
to issue exemptions to facilities that meet certain conditions.
H.R. 8 also provides the U.S. courts of appeals jurisdiction to
rule on agency requests for extensions in the event FERC's
schedule for review would prevent it from complying with its
own statutory mandates.
Energy and manufacturing workforce development. DOE has in
place a number of programs to provide training for careers in
the energy sector and related fields. However, the rapid growth
of domestic oil and natural gas production and the related
expansion of energy-intensive manufacturing have significantly
changed the employment market and the skills most in demand. In
addition, certain groups, including religious, ethnic
minorities, women, veterans, individuals with disabilities, and
socioeconomically disadvantaged individuals, historically have
been underrepresented in many of these jobs, due in part to a
lack of training. Furthermore, while overall energy sector job
growth has been robust, certain fields, such as coal mining,
have been in decline. H.R. 8 seeks to redirect DOE workforce
training programs to increase the number of skilled workers
trained to work in energy and manufacturing-related fields. It
also would provide re-training to displaced energy and
manufacturing sector workers.
Energy security and diplomacy. America has emerged as the
world's leading energy-producing nation and is projected to
become a net energy exporter.\3\ Beyond the economic benefits
of this energy abundance, there are also important
opportunities to enhance the nation's energy security and help
advance its foreign policy goals. However, existing energy laws
are based on assumptions of energy scarcity and are ill-suited
to take advantage of these opportunities. In particular, there
is no formalized process to incorporate the geopolitical
benefits of increased domestic energy production into
government decision-making. This includes the benefits of
reduced reliance on energy imports, as well as the potential
opportunities for energy exports to allies and trading
partners. H.R. 8 creates an interagency task force to
coordinate with Canada and Mexico on mutually-beneficial energy
policy decisions affecting North America, as well as Trans-
Atlantic and Trans-Pacific forums reaching out to allies on
energy matters. It also would expedite the Federal approval of
liquefied natural gas (LNG) export projects.
---------------------------------------------------------------------------
\3\Energy Information Administration, ``Annual Energy Outlook
2015,'' http://www.eia.gov/forecasts/AEO.section__energyprod.cfm.
---------------------------------------------------------------------------
Energy efficiency. America's energy policy addresses demand
as well as supply. The Federal government has a host of
programs that seek to improve energy efficiency at Federal
facilities and throughout the economy. These programs
occasionally need to be revised to reflect technological
change, address emerging problems, and improve accountability
and transparency. For example, there are a host of unexplored
opportunities to save energy at Federal facilities, as well as
a number of efficiency standards and voluntary measures facing
implementation challenges. H.R. 8 contains a number of
provisions applicable to Federal facilities, such as those
reducing energy use at data centers and expanding the use of
energy savings performance contracts. It also clarifies the
role of DOE in advising States on building codes, provides a
resolution to concerns about residential gas furnace efficiency
standards, and takes steps to encourage wider participation in
voluntary energy savings programs.
Accountability. H.R. 8 seeks to promote government
accountability and transparency in regulatory decision-making.
The legislation requires FERC to establish an Office of
Compliance Assistance and Public Participation to be
responsible for promoting improved compliance with Commission
regulations, make recommendations on energy market behavior and
enforcement, and perform outreach to the regulated community.
The legislation also requires the Government Accountability
Office to study whether and how market rules, practices, and
structures of regional transmission organizations produce rates
that are just and reasonable.
Hearings
The Subcommittee on Energy and Power held a hearing
entitled ``Title II: 21st Century Workforce'' on April 23,
2015. The Subcommittee received testimony from:
Tracy Brundage, Vice President, Workforce
Development and Continuing Education, Pennsylvania
College of Technology, on behalf of ShaleNET;
Rick Jarvis, Vice President of Field
Construction, morrow-Meadows Corporation, on behalf of
National Electrical Contractors Association;
Ramanan Krishnamoorti, Chief Energy Officer,
University of Houston;
Monica Martinez, President, Hispanics in
Energy;
Felix W. Ortiz, Founder, Chairman and CEO,
Viridis Learning; and
Charles Wilson, Senior Reactor Operator
Trainer and Managing Partner, CW Consulting Group, LLC.
The Subcommittee on Energy and Power held a hearing
entitled ``Strategic Petroleum Reserve Discussion Draft and
Title IV Energy Efficiency'' on April 30, 2015. The
Subcommittee received testimony from:
Christopher A. Smith, Assistant Secretary
for Fossil Energy, U.S. Department of Energy;
Christopher Peel, Corporate Senior Vice
President and COO, Rheem Manufacturing Company, on
behalf of the Air-Conditioning, Heating, and
Refrigeration Institute;
Kateri Callahan, President, Alliance to Save
Energy;
Frank Thompson, President, Sweetwater
Builders, Inc., on behalf of the National Association
of Home Builders;
Elizabeth Noll, Energy Efficiency Advocate,
Natural Resources Defense Council;
John W. Somerhalder II, Chairman, President,
and CEO, on behalf of the American Gas Association;
Rona Newmark, Vice President, Intelligent
Efficiency Strategy, EMC Corp., on behalf of the
Information Technology Council; and
Mark Wagner, Vice President, U.S. Government
Relations, Johnson Controls, Inc., on behalf of the
Federal Performance Contracting Coalition.
The Subcommittee on Energy and Power held a hearing
entitled ``Discussion Drafts Addressing Hydropower Regulatory
Modernization and FERC Process Coordination under the Natural
Gas Act'' on May 13, 2015. The Subcommittee received testimony
from:
Paul R. LePage, Governor of Maine;
Ann F. Miles, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Donald F. Santa, President and CEO,
Interstate Natural Gas Association of America;
Carolyn Elefant, Member of the Board, The
Pipeline Safety Coalition and Principal, The Law
Offices of Carolyn Elefant;
Randy Livingston, Vice President, Power
Generation, Pacific Gas and Electric Company;
John J. Suloway, Board Member, National
Hydropower Association;
John Collins, Managing Director of Business
Development, Cube Hydro Partners; and
Richard Roos-Collins, General Counsel, The
Hydropower Reform Coalition and Principal, Water and
Power Law Group, PC, on behalf of The Hydropower Reform
Coalition.
The Subcommittee on Energy and Power held a hearing
entitled ``Discussion Draft Addressing Energy Reliability and
Security'' on May 19, 2015. The Subcommittee received testimony
from:
Michael Bardee, Director, Office of Electric
Reliability, Federal Energy Regulatory Commission;
Gerry W. Cauley, President and CEO, North
American Electric Reliability Corporation;
Thomas Fanning, Chairman, President, and
CEO, Southern Company;
Elinor Haider, Vice President, Market
Development, Veolia Energy North America, on behalf of
the Alliance for Industrial Efficiency;
Joseph Dominguez, Executive Vice President,
Governmental and Regulatory Affairs and Public Policy,
Exelon Corporation;
Mike Bergey, President and CEO, Bergey Wind
Power and Board President, Distributed Wind Energy
Association, on behalf of the Distributed Wind Energy
Association;
John Di Stasio, President, Large Public
Power Council;
Emily Heitman, Vice President and General
Manager, Demand Side Organization Power Transformers,
ABB, Inc., on behalf of the National Electrical
Manufacturers Association; and
Elgie Holstein, Senior Director for
Strategic Planning, Environmental Defense Fund.
The Subcommittee on Energy and Power held a hearing
entitled ``Quadrennial Energy Review and Related Discussion
Drafts'' on June 2, 2015. The Subcommittee received testimony
from:
Ernest J. Moniz, Secretary, U.S. Department
of Energy;
Rudolf Dolzer, Advisory Board Member,
Association of International Petroleum Negotiators and
Professor of International Law, University of Bonn;
Jason Grumet, President, Bipartisan Policy
Center;
Scott Martin, Commissioner, Lancaster
County, PA;
Gerald Keeps, Vice President, Upstream
Research and Consulting, HIS;
Alison Cassady, Director of Domestic Energy
Policy, Center for American Progress; and
Emily Hammond, Professor of Law, George
Washington University Law School.
The Subcommittee on Energy and Power held a hearing
entitled ``Discussion Draft on Accountability and Department of
Energy Perspectives on Title IV: Energy Efficiency'' on June 4,
2015. The Subcommittee received testimony from:
Kathleen Hogan, Deputy Assistant Secretary
for Energy Efficiency, U.S. Department of Energy;
J. Arnold Quinn, Director, Office of Energy
Policy and Innovation, Federal Energy Regulatory
Commission;
Larry R. Parkinson, Director, Office of
Enforcement, Federal Energy Regulatory Commission;
Sue Kelly, President and CEO, American
Public Power Association;
John E. Shelk, President and CEO, Electric
Power Supply Association;
Christopher Cook, President and General
Counsel, Solar Grid Storage LLC;
Jonathan M. Weisgall, Vice President,
Legislative and Regulatory Affairs, Berkshire Hathaway
Energy;
William S. Scherman, Partner, Gibson, Dunn &
Crutcher LLP; and
Peter Gaibraith Kelly, Senior Vice
President, External Affairs, Competitive Power
Ventures, Inc.
Committee Consideration
On July 22, 2015, the Subcommittee on Energy and Power met
in open markup session and forwarded the Committee Print
entitled ``To modernize energy infrastructure, build a 21st
century workforce, bolster America's energy security and
diplomacy, and promote energy efficiency and government
accountability'' to the full Committee by a voice vote. On
September 29 and 30, 2015, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 8 reported
to the House, as amended, by a recorded vote of 32 yeas and 20
nays.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The following reflects the recorded votes taken during
the Committee consideration:
T7649.001
T7649.002
T7649.003
T7649.004
T7649.005
T7649.006
T7649.007
T7649.008
T7649.009
T7649.010
T7649.011
T7649.012
T7649.013
T7649.014
T7649.015
T7649.016
T7649.017
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held hearings and made
findings that are reflected in this report.
Statement of General Performance Goals and Objectives
The goal of this legislation is to modernize energy
infrastructure, build a 21st century workforce, bolster
America's energy security and diplomacy, and promote energy
efficiency and government accountability.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
8 would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Earmarks, Limited Tax Benefits, and Limited Tariff Benefits
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI
of the Rules of the House of Representatives, the Committee
finds that H.R. 8 contains no earmarks, limited tax benefits,
or limited tariff benefits.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 19, 2015.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 8, the North
American Energy Security and Infrastructure Act of 2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Megan
Carroll.
Sincerely,
Keith Hall.
Enclosure.
H.R. 8--North American Energy Security and Infrastructure Act of 2015
Summary: H.R. 8 would amend current law and authorize
activities--to be administered primarily by the Department of
Energy (DOE)--to promote energy efficiency and enhance the
reliability and security of energy-related infrastructure. The
bill also would expand and extend federal agencies' authority
to use certain types of long-term contracts to invest in energy
conservation measures and related services and specify various
energy-related goals and requirements for federal agencies.
CBO estimates that enacting H.R. 8 would increase direct
spending by $414 million over the 2016-2025 period. In
addition, CBO estimates that implementing the legislation
would, on net, reduce spending subject to appropriation by $411
million over the 2016-2020 period, assuming appropriation
actions consistent with the legislation. Enacting H.R. 8 could
affect revenues, but CBO estimates that any such effects would
total less than $500,000 in any year.
Because H.R. 8 would affect direct spending and revenues,
pay-as-you-go procedures apply.
CBO estimates that enacting H.R. 8 would not increase net
direct spending or on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2026.
H.R. 8 would impose intergovernmental and private-sector
mandates, as defined in the Unfunded Mandates Reform Act
(UMRA). CBO estimates that the aggregate cost of complying with
the intergovernmental mandates would fall below the annual
threshold established in UMRA ($77 million in 2015, adjusted
annually for inflation). CBO cannot determine whether the
aggregate cost of the private-sector mandates would exceed the
annual threshold established in UMRA ($154 million, adjusted
annually for inflation).
CBO has not reviewed some provisions of sections 1102 and
1104 for mandates because section 4 of UMRA excludes from the
application of that act any legislative provisions that are
necessary for national security; CBO has determined that those
provisions fall within that exclusion.
Estimated Cost to the Federal Government: The estimated
budgetary effects of this legislation are shown in the
following table. The costs of this legislation primarily fall
within budget function 270 (energy).
TABLE 1--SUMMARY OF THE BUDGETARY EFFECTS OF H.R. 8\a\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------------
2016- 2016-
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2020 2025
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority.................................. 46 46 46 46 46 46 46 46 46 46 230 460
Estimated Outlays........................................... 14 32 46 46 46 46 46 46 46 46 184 414
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................... 33 14 8 5 0 -4 -8 -12 -16 -21 60 -1
Estimated Outlays........................................... 6 -204 -149 -49 -15 185 136 59 14 -12 -411 -29
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\a\The estimates presented in this table reflect CBO's view of how cash flows related to energy savings performance contracts (ESPCs) should be reflected in the federal budget. Since ESPCs
were first implemented in 1998, however, the Administration has not recorded the full extent of federal obligations under ESPCs upfront when contracts were signed. Instead, the
Administration records ongoing contract payments to vendors under ESPCs on a year-by-year basis as appropriations for such payments are provided. If the Administration was to continue
following that practice for executing ESPCs under H.R. 8, agencies' total energy-related costs would be largely unchanged during the contract period, when savings from reduced energy costs
would go toward making contractual payments to vendors. As a result, CBO estimates that there would be no significant reduction in appropriations from implementing H.R. 8 in the 10-year
period covered by this estimate. If expected reductions in energy use continued beyond the contract period, budgetary savings would accrue to the federal government if annual appropriations
for agencies' energy-related spending were reduced accordingly.
Basis of estimate: For this estimate, CBO assumes that H.R.
8 will be enacted near the start of fiscal year 2016.
Changes in direct spending
Estimated increases in direct spending under H.R. 8 stem
from provisions that would modify agencies' authority to enter
into energy savings performance contracts (ESPCs), a specific
type of long-term contract used to procure equipment and
services to conserve energy in federal buildings. The bill also
would specify a variety of energy-related goals and
requirements for federal agencies, but CBO estimates such
provisions would not significantly affect direct spending.
Expanded Authority To Use ESPCs. Under current law, a
variety of statutory provisions and executive orders direct
federal agencies to meet certain goals to reduce the amount of
energy used, increase the consumption of electricity that is
generated from renewable sources, reduce emissions of
greenhouse gases, and ensure that federal facilities meet
certain standards related to sustainable resource use. To
support investments in energy-efficiency and renewable
technologies necessary to achieve those goals, federal agencies
sometimes use ESPCs--a specific type of long-term contract that
enables a nonfederal vendor to finance energy-related
investments on behalf of the government.
CBO generally considers that implementing ESPCs will affect
both direct spending and spending subject to appropriation. The
rationale for CBO's longstanding budgetary treatment of ESPCs
and similar contracts, and differences between CBO's view and
the Administration's, are discussed in depth in a recent CBO
report on that topic.\1\ In brief, upon entering into an ESPC,
the government effectively commits to making payments to a
vendor in future years before having appropriations to cover
all of the resulting costs; in CBO's view, the authority to
enter into such contractually binding agreements without
appropriations is a form of direct spending. ESPCs permit
agencies to pay vendors for energy conservation measures and
related financing costs over time on the basis of anticipated
and realized reductions in energy costs, which are generally
paid from annual discretionary appropriations. Thus, proposals
that affect agencies' use of such contracts also affect
spending subject to appropriation.
---------------------------------------------------------------------------
\1\See Congressional Budget Office, Using ESPCs to Finance Federal
Investments in Energy-Efficient Equipment, (February 2015), https://
www.cbo.gov/publication/49869.
---------------------------------------------------------------------------
H.R. 8 would modify federal agencies' authority to use
ESPCs to finance necessary capital investments. Key changes
would:
Permit agencies to use, sell, or transfer
energy incentives, rebates, or credits (such as
renewable energy certificates) as a means of making
payments to vendors under ESPCs;\2\
---------------------------------------------------------------------------
\2\Renewable energy certificates represent the right to the
nonpower renewable and environmental attributes of electricity
generated from renewable resources. Such certificates, and other
similar incentives and rebates, can be sold separately from the
underlying units of physical electricity. For purposes of complying
with certain energy-related requirements, the purchase of a renewable
energy certificate is equal to purchasing the renewable attributes of
the underlying electricity without consuming or purchasing the energy
itself.
---------------------------------------------------------------------------
Expand the definition of an ``energy
conservation measure'' to include the acquisition of
energy-consuming devices and support structures (such
as appliances located within federal buildings); and,
Require federal agencies to include, in
estimating the value of energy savings attributable to
an ESPC, any anticipated reduction in operation and
maintenance expenses related to energy conservation
measures financed under the contract.
CBO expects that those proposed changes to agencies'
authority to use ESPCs would enable agencies to pursue new
projects that are otherwise unlikely to be undertaken under
current law. In particular, we expect that authorizing agencies
to use incentives such as renewable energy certificates to
finance contract payments would enable greater investments in
renewable technologies. Under current law, agencies' authority
to use such incentives to pay for ESPC costs is uncertain in
light of a 2013 decision by a federal contract appeals
board.\3\ As a result of that decision and based on information
from DOE, CBO expects that, under current law, federal agencies
are unlikely to pursue ESPCs that involve renewable energy
technologies as a significant component.
---------------------------------------------------------------------------
\3\Honeywell International Inc., Armed Services Board of Contract
Appeals No. 57779 (August 7, 2013).
---------------------------------------------------------------------------
Thus, CBO anticipates that allowing agencies to use such
incentives would lead them to make larger investments in
renewable projects than would otherwise occur. CBO estimates
that, under H.R. 8, agencies would use ESPCs to adopt
additional energy conservation measures with an investment
value of about $35 million annually. That estimate is based on
historical information from DOE on the potential magnitude of
renewable energy projects that are likely to be pursued through
ESPCs if agencies were explicitly permitted to use incentives
such as renewable energy certificates to fund contracts. The
estimate represents a relatively modest incremental increase in
anticipated spending for energy-related investments. By
comparison, since 2003 overall spending by federal agencies for
such investments has averaged nearly $1.5 billion annually,
with roughly one-third of energy conservation measures--or
about $500 million annually--acquired through ESPCs or similar
long-term contracts.
It is possible that incremental commitments through ESPCs
would be even greater under H.R. 8 to the extent that agencies
that currently plan to undertake projects using appropriated
funds for the upfront costs shift instead toward using such
contracts, given the expanded flexibility under the bill.
However, based on information from DOE about the multi-billion
dollar pipeline of energy-related improvements that agencies
intend to pursue under current law over the next several years,
CBO does not expect that increased use of contracts to finance
projects would reduce the need for future appropriations for
energy-related investments. Rather, our estimate reflects the
expectation that, under the bill, overall levels of investment
would increase relative to current law.
Under H.R. 8, CBO estimates that increased direct spending
for the upfront cost of contractual commitments to acquire
additional energy conservation measures through ESPCs would
total $46 million annually. CBO's estimate of direct spending
reflects an amount equal to the annual cost of energy
conservation measures as installed (about $35 million), plus
the net present value of the portion of borrowing costs
attributable to contract interest rates that would exceed U.S.
Treasury interest rates (about $11 million). (Borrowing costs
equivalent to the amount of Treasury interest that would be
paid if projects were financed with appropriated funds are not
included in our estimate because, for the enforcement of
Congressional budget rules, changes in Treasury interest costs
are not counted as a cost or savings related to any particular
legislative provision.) CBO's estimate of spending reflects its
judgment as to when equipment or services would be provided--
typically over a three-year period for equipment.
In addition, CBO estimates that projects financed through
ESPCs would, on net, reduce federal agencies' energy costs,
which are typically paid for using annual discretionary
appropriations. (See the subsequent discussion on changes in
spending subject to appropriation for details on such effects.)
Energy-Related Goals and Requirements for Federal Agencies.
As previously mentioned, existing statutory provisions and
executive orders direct federal agencies to meet certain
energy-related goals and requirements. According to DOE,
federal agencies have identified a multi-billion dollar
pipeline of additional energy-related improvements that they
intend to pursue under current law over the next several years
in order to comply with existing energy-related goals and
requirements. Under current law, CBO expects that agencies will
pursue some of those improvements through ESPCs and similar
arrangements involving an increase in estimated direct
spending.
H.R. 8 would extend statutory goals for federal agencies to
reduce energy consumption, expand requirements for federal
buildings to meet certain standards related to sustainable
resource use, and broaden definitions of the types of energy
that can be considered renewable for purposes of complying with
an existing requirement related to federal agencies' use of
renewable electricity. According to DOE, the goals and
requirements specified by those provisions are largely
consistent with existing statutory and administrative policy,
and CBO expects that they would not significantly affect the
timing or magnitude of federal spending on energy-related
technologies.
Spending subject to appropriation
Assuming appropriation action consistent with the
legislation, CBO estimates that implementing H.R. 8 would, on
net, reduce spending subject to appropriation by $411 million
over the 2016-2020 period (see Table 2). That estimate includes
$74 million in increased costs for DOE and other agencies to
pursue activities related to energy infrastructure and energy
efficiency that would be more than offset by estimated
reductions in spending subject to appropriation totaling $485
million. Those reductions include the effects of a provision
that would establish an Energy Security and Infrastructure
Modernization Fund with proceeds from the sale of oil in the
Strategic Petroleum Reserve, estimated reductions in energy-
related spending attributable to increased use of ESPCs under
the bill, and forgone costs to comply with an existing
requirement for federal agencies to reduce their use of fossil
fuels.
In addition, several provisions--particularly those related
to the security of the nation's electricity transmission grid
and other aspects of the nation's energy infrastructure--would
specify a variety of new procedural and analytical requirements
for the Federal Energy Regulatory Commission (FERC), which
regulates the interstate transmission of electricity, natural
gas, and oil and plays a role in approving and licensing
certain energy projects. Such provisions could affect FERC's
workload; however, because FERC recovers 100 percent of its
costs through user fees, any change in that agency's costs
(which are controlled through annual appropriation acts) would
be offset by an equal change in fees that the commission
charges, resulting in no net change in federal spending.
TABLE 2--CHANGES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 8
----------------------------------------------------------------------------------------------------------------
By Fiscal year, in millions of dollars--
--------------------------------------------------------------
2016 2017 2018 2019 2020 2016-2020
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Energy-Related Infrastructure and Energy
Efficiency
Estimated Authorization Level................ 34 18 17 17 17 103
Estimated Outlays............................ 7 14 17 18 18 74
Energy Security and Infrastructure Modernization
Fund
Estimated Authorization Level................ 0 0 0 0 0 0
Estimated Outlays............................ 0 -214 -157 -55 -16 -442
Net Reductions in Energy and Energy-Related Costs
Attributable to ESPCs
Estimated Authorization Level................ -1 -3 -6 -9 -12 -31
Estimated Outlays............................ -1 -3 -6 -9 -12 -31
Repeal of Requirement to Reduce Fossil Fuel Use
Estimated Authorization Level................ 0 -1 -3 -3 -5 -12
Estimated Outlays............................ 0 -1 -3 -3 -5 -12
Total Changes
Estimated Authorization Level............ 33 14 8 5 0 60
Estimated Outlays........................ 6 -204 -149 -49 -15 -411
----------------------------------------------------------------------------------------------------------------
Note: ESPCs = energy savings performance contracts.
Energy-Related Infrastructure and Energy Efficiency. H.R. 8
would authorize DOE and other agencies to pursue activities to
modernize and improve the security of energy-related
infrastructure and promote the development and use of energy-
efficient technologies in buildings, appliances, and industrial
processes. The bill also would direct DOE, in collaboration
with the Department of State, to undertake a variety of
analytical and diplomatic efforts related to energy security.
According to DOE, many of the requirements specified in
H.R. 8 are consistent with ongoing efforts and likely to be
achieved within existing levels of funding; as a result, CBO
estimates that implementing such provisions would not
significantly affect the agency's costs. Based on information
from DOE, CBO estimates that fully funding those activities
would require appropriations totaling $103 million over the
2016-2020 period (and $85 million in later years). That five-
year total includes:
$50 million in specified authorizations for
incentive payments to certain producers of
hydroelectricity;
$25 million in estimated authorizations for
a new program to identify and promote technologies to
enhance the cybsersecurity of the nation's bulk-power
system;
$15 million in specified authorizations for
grants to utilities and local governments to
demonstrate advanced and innovative technologies
related to efficient use of energy and water; and
$13 million in estimated authorizations for
a variety of energy-related studies, reports, and other
activities.
Assuming appropriation of the amounts authorized and
estimated to be necessary, CBO estimates resulting outlays
would total $74 million over the 2016-2020 period and $114
million in later years. That estimate is based on historical
spending patterns for existing and similar activities carried
out by DOE.
That estimate includes the costs for DOE to develop, in
consultation with other federal agencies and owners and
operators of critical electric infrastructure and military
installations, a plan to establish a national storage system
for spare large power transformers and other equipment that
could be used to replace critically damaged components of the
bulk-power system; however, our estimate does not include any
costs that DOE might incur to subsequently implement such a
plan because we have no basis for predicting what it might
recommend. Based on information from DOE, CBO expects the
agency would need about two years to collaborate and develop
the proposed plan, which would assess the need for such a
storage system and options for covering its costs, which CBO
expects could cost up to a few hundred million dollars to
establish. Any federal spending for such a system would be
subject to appropriation, and could be offset by fees paid by
users depending on the details of the plan.
Energy Security and Infrastructure Modernization Fund.
Section 1201 would authorize the appropriation of $850 million
over the 2017-2020 period for certain infrastructure projects
and establish the terms and conditions under which those costs
would be offset during that period by authorizing the sale of
oil from the Strategic Petroleum Reserve (SPR) for that
purpose. Any amounts appropriated or collected from the sale of
oil would be deposited in a new Energy Security and
Infrastructure Modernization Fund. Such oil sales would be in
amounts specified in the bill and would be contingent on
authority provided in future appropriation acts. Other
provisions would direct DOE to deposit proceeds in the year the
oil is sold and would preclude sales if the sale price would be
lower than the average price paid to acquire the oil for the
SPR or if the oil was needed to meet certain emergency
conditions.
For this estimate, CBO assumes that future appropriation
acts would appropriate the amounts authorized in the bill and
authorize DOE to sell volumes of oil from the SPR as necessary
to generate proceeds equivalent to those amounts. CBO also
assumes that DOE would ensure that the net proceeds from the
sales would equal or exceed the amounts required by those
acts.\4\ Because of differences in the timing of such
collections and spending, CBO estimates that implementing the
program would reduce discretionary spending by about $442
million over the 2016-2020 period, but increase it by the same
amount after 2021 as projects are completed, resulting in no
net cost over the 2016-2025 period.
---------------------------------------------------------------------------
\4\Given the volatility of oil prices, it may be difficult for DOE
to match sales proceeds with appropriated amounts. CBO expects that DOE
would deposit any excess proceeds in the SPR Petroleum Account, which
is available to be spent without further appropriation for certain
purposes.
---------------------------------------------------------------------------
Net Reductions in Energy and Energy-Related Costs
Attributable to ESPCs. As previously discussed, CBO expects
that changes to the ESPC statute under H.R. 8 would increase
agencies' use of ESPCs to finance energy-related investments,
which also would affect energy-related spending subject to
appropriation. ESPCs allow agencies to pay for energy-related
investments over time on the basis of anticipated and realized
reductions in energy costs, which are generally paid from
annual appropriations. CBO estimates that reductions in such
costs attributable to contracts entered into under H.R. 8 would
occur gradually over the period of time covered by such
contracts--up to 25 years. As a result, most anticipated
savings attributable to increased ESPCs would occur beyond the
period covered by this estimate. CBO estimates that such
savings would total $41 million over the 2016-2020 period and
$182 million over the 2016-2025 period.
Those estimated savings would be partially offset by
increased spending for certain services related to ESPCs
entered into under the bill. Typically, when using such a
contract, an agency agrees to make payments for services
related to the operation and maintenance of newly installed
equipment. Such agreements include measurement and verification
activities to confirm that projects reduce energy consumption
as guaranteed by the contract. Because the government can opt
out of those services at any time, such contract-related costs
are considered discretionary. For this estimate, CBO estimates
that the cost of such services would total about 2.5 percent of
the value of energy conservation measures acquired through
ESPCs. Assuming appropriation of the necessary amounts, CBO
estimates that discretionary spending for optional ESPC
contract-related services would total $10 million over the
2016-2020 period and gradually increase as new contracts are
entered into each year and payments on older contracts
continue, totaling $45 million over the 2016-2025 period.
Repeal of Requirement to Reduce Fossil Fuel Use. H.R. 8
would eliminate section 433 of the Energy Independence and
Security Act of 2007 (EISA), which requires federal agencies to
gradually phase out, and eliminate by 2030, the use of energy
generated from fossil fuel in newly constructed federal
buildings and buildings undergoing major renovations. Under
current law, that provision is one of several energy-related
requirements with which federal agencies must comply; for
example, other statutory provisions and executive orders direct
agencies to reduce overall consumption of energy and water,
reduce greenhouse gas emissions, increase use of energy
generated from renewable sources, and meet certain
sustainability-related standards. According to DOE, agencies
are expected, under current law, to make significant
investments in energy-related technologies, many of which will
help agencies simultaneously achieve multiple requirements.
For that reason, CBO estimates that repealing any single
energy-related requirement would not necessarily change the
overall amount of federal investments in energy-related
technologies. In particular, during the 2016-2020 period
covered by this estimate, agencies must also ensure that newly
constructed buildings and major renovations are designed to
achieve certain energy-efficiency standards; according to DOE,
many investments that agencies pursue to comply with such
standards are likely to simultaneously fulfill the requirement
under section 433 of EISA. After 2020, CBO expects that
incremental spending attributable to federal agencies' efforts
to comply with the standard would increase as it becomes more
stringent.
Nevertheless, CBO expects that repealing section 433 of
EISA would, on the margin, reduce agencies' near-term costs.
Although DOE has not yet finalized a rule to implement that
provision, the department expects that, as an alternative to
reducing the use of energy generated by fossil fuels, agencies
will be allowed to achieve compliance by purchasing renewable
energy certificates from firms that generate electricity from
renewable resources. (Under current law, federal agencies
purchase such certificates to comply with certain other energy-
related requirements.)
Based on information from DOE, CBO estimates that under
current law, agencies will use discretionary appropriations to
purchase renewable energy certificates worth as much as $12
million over the next five years and $52 million over the 2016-
2025 period in order to comply with section 433 of EISA. Thus,
CBO estimates that repealing that provision would lead to
discretionary savings of those amounts, assuming future
appropriations for compliance costs are reduced accordingly.
Revenues
H.R. 8 would amend existing law regarding actions taken by
electric utilities when DOE determines that the electric power
system is experiencing emergency conditions. Under current law,
during a designated emergency, DOE can require firms to produce
or supply electricity to avoid or resolve blackouts or other
risks to the electric power system. If those actions violate
other regulatory requirements, such as air pollution limits,
the affected firms may be liable for penalties under those
laws. H.R. 8 would revise this framework by establishing new
procedures for ensuring compliance with environmental standards
during designated emergencies. The bill also would exempt firms
from certain civil and criminal liability if the actions taken
to comply with DOE's emergency orders violate environmental or
other regulatory standards.
According to DOE, it has issued emergency orders to
electric utilities six times since 1978, and none of those
transactions resulted in the payment of penalties. Based on
that historical experience, CBO estimates that revenues from
such penalties would not be significant over the next 10 years
under current law; as a result, CBO estimates that reducing
firms' liability for such penalties would not result in any
significant loss of federal revenues.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in Table 3.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
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NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............................. 14 32 46 46 46 46 46 46 46 46 184 414
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Increase in long-term deficit and net direct spending: CBO
estimates that enacting the legislation would not increase net
on-budget deficits or net direct spending by $5 billion or more
in any of the four consecutive 10-year periods beginning in
2026.
Intergovernmental and private-sector impact: H.R. 8 would
impose intergovernmental and private-sector mandates as defined
in UMRA. Based on information from DOE, feedback from state
agencies and industry sources, and analyses of similar
requirements, CBO estimates that the aggregate cost of
complying with the intergovernmental mandates would fall below
the annual threshold established in UMRA ($77 million in 2015,
adjusted annually for inflation). The cost of most of the
private-sector mandates would be small. However, because the
cost of one of the mandates would depend on future action by
DOE, CBO cannot determine whether the aggregate cost of the
mandates would exceed the annual threshold established in UMRA
($154 million, adjusted annually for inflation).
Mandates that apply to public and private entities
The bill could impose an intergovernmental and private-
sector mandate on entities that are required to pay fees to
FERC. If FERC increases those fees to offset the costs of
implementing the bill, the bill would increase the cost of an
existing mandate on entities required to pay those fees. The
amount of fees collected would depend on the level of future
appropriations. Based on incremental changes in past
appropriations following other energy legislation, CBO
estimates that any change in fees collected would not be
substantial.
The bill would require state utility commissions and
nonregulated electric utilities to consider the adoption of new
standards related to electric grid resiliency and reliability,
and the use of new energy technologies. The requirement to
consider those standards would be an intergovernmental and
private-sector mandate because it would increase those
entities' responsibilities under existing mandates in the
Public Utilities Regulatory Policies Act. Based on information
from public utility commissions and industry sources, CBO
expects that state utility commissions and nonregulated
utilities would comply with the mandate using existing
resources so that the incremental costs would be small.
Mandates that apply to public entities only
The bill also would impose an intergovernmental mandate by
requiring state, local, and tribal agencies involved in the
federal review process for natural gas and hydropower projects
licensed by FERC to comply with new administrative requirements
for expediting those reviews. Based on information from FERC
and public utility commissions about workloads associated with
those activities, CBO estimates that the costs of those
mandates would be small.
In addition, H.R. 8 contains several preemptions of state
and local authority. Because preemptions limit the authority of
state and local governments, they are considered
intergovernmental mandates under UMRA, but CBO estimates that
those preemptions would not impose any duty that would result
in additional spending or a loss of revenues by state, local,
or tribal governments:
Section 1102 would exempt electric utilities
from complying with state and local environmental and
liability laws if those laws would conflict with an
emergency order by FERC to maintain grid reliability.
Section 1106 would exempt companies from
state and local laws that otherwise would require them
to disclose vulnerabilities in cybersecurity products
that the companies discover as part of the
certification process in DOE's Cyber Sense program.
Section 4125 would preempt state and local
consumer protection laws by stating that the inclusion
of an Energy Star label on a product does not create an
express or implied warranty and shall not give rise to
any private claims or rights of action.
Section 4161 would preempt state disclosure
laws relating to appliance energy use labels in cases
where DOE revises definitions of covered appliances.
Mandates that apply to private entities only
The bill would impose private-sector mandates on electric
transmission organizations, manufacturers of consumer products
and equipment, and exporters of liquefied natural gas. The bill
also would impose a private-sector mandate to the extent that
it eliminates an existing right to seek compensation for
damages under environmental laws.
Reporting requirement for electric transmission
organizations. The bill would impose mandates on electric
transmission organizations (Regional Transmission Organizations
and Independent System Operators) that operate capacity
markets. In capacity markets, power plants receive compensation
for their capacity, or the power that they will provide at some
point in the future. Under the bill the electric transmission
organizations would be required to submit an analysis to FERC
concerning the structure of each market that operates as a
capacity market. Those organizations also would have to submit
an analysis with each filing to establish a new capacity market
or to substantially modify the design of an existing capacity
market. Based on information from FERC, CBO anticipates that
about 30 analyses would be submitted annually by electric
transmission organizations. Based on the cost of similar types
of reports, CBO estimates that the cost of completing each
report could total a few million dollars.
Energy efficiency standards and labeling requirements. The
bill would authorize DOE to modify the definitions of consumer
products and equipment that are subject to energy efficiency
standards if there is consensus among interested parties,
including manufacturers. If DOE modifies a definition so that
products or equipment are subject to more stringent standards
for energy efficiency, the bill would impose a mandate on
manufacturers of those products or equipment. The cost of the
mandate would depend on future action by DOE. As such, CBO has
no basis to estimate the cost of the mandate.
The bill also would allow the Federal Trade Commission
(FTC) to issue labeling requirements for consumer products or
equipment covered by a modified definition. Additionally, the
bill would require FTC to consider including information about
Smart Grid capability in product labels. Based on analyses of
other labeling requirements, CBO expects that the cost to
comply with any such changes to labeling requirements would not
be substantial.
Disclosure requirement for exports of liquefied natural
gas. The bill would impose a private-sector mandate on entities
seeking DOE approval to export liquefied natural gas (LNG). The
Natural Gas Act requires entities seeking to export natural gas
to obtain approval from DOE. The bill would require that
applicants, as a condition for approval, publicly disclose the
countries that would receive the exports. Exporters currently
report information about destination countries to DOE on a
monthly basis. According to DOE, close to 100 applications have
been approved or are pending for export of LNG. Because the
number of applications for export is small and the cost to
disclose destination countries is low, CBO estimates that the
cost of this mandate would be small.
Elimination of a right of action. The bill would impose a
private-sector mandate to the extent that it eliminates an
existing right to seek compensation for damages under
environmental laws from utilities operating in compliance with
certain federal emergency orders issued by FERC. The cost of
the mandate would be the forgone value of awards and
settlements in such claims. Because FERC has issued emergency
orders infrequently, CBO expects that such claims would be
uncommon in the future. Consequently, CBO expects that the cost
of the mandate would be small.
Previous CBO estimate: On October 15, 2015, CBO transmitted
a cost estimate for S. 2012, the Energy Policy Modernization
Act of 2015, as reported by the Senate Committee on Energy and
Natural Resources on September 9, 2015. Title I of that
legislation contains several provisions that are substantively
similar to provisions of H.R. 8. In particular, both bills
would authorize funding for activities to increase the energy-
efficiency of buildings and appliances and eliminate the
existing requirement (under section 433 of EISA) for federal
agencies to reduce consumption of energy generated from fossil
fuels. Our cost estimates of those provisions are the same for
both bills.
In addition, both H.R. 8 and S. 2012 contain substantively
similar provisions that would modify federal agencies'
authority to use ESPCs to finance energy-related investments,
and our estimates of additional direct spending and changes in
spending subject to appropriation attributable to those
provisions are the same. However, S. 2012 would make additional
changes--by modifying certain energy-related requirements for
federal agencies and expanding agencies' authority to use
utility service energy contracts--that CBO expects would result
in higher levels of direct spending and larger changes in
spending subject to appropriation than H.R. 8.
Estimate prepared by: Federal Costs: Megan Carroll,
Kathleen Gramp, and Jon Sperl; Impact on State, Local, and
Tribal Governments: Jon Sperl; Impact on the Private Sector:
Amy Petz.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Duplication of Federal Programs
No provision of H.R. 8 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting H.R. 8 specifically
directs to be completed no rule makings within the meaning of 5
U.S.C. 551.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
TITLE I--MODERNIZING AND PROTECTING INFRASTRUCTURE
Sec. 1101. FERC process coordination
This section would reinforce the FERC's role as the lead
agency for siting interstate natural gas pipelines. This
section would require FERC to identify all agencies considering
an aspect of an application and set the schedule for review,
including a deadline for a final decision. Cooperating agencies
should carry out reviews concurrently, identifying any issues
of concern that may delay or prevent an agency from meeting the
schedule established by FERC, and defer to FERC on the scope of
the environmental review when appropriate and in accordance
with applicable Federal law. If issues arise, the Commission
could forward them to the heads of the relevant agency for
resolution. In cases where there is a failure to meet the
schedule that is established by FERC, the head of the relevant
agency would notify Congress and set forth a recommended
implementation plan to ensure a final decision is reached.
Clarification also is provided to ensure that if a Federal or
State agency considering an aspect of an application for
Federal authorization requires the applicant to submit
environmental data, the agency shall consider data gathered by
aerial or other remote means that the applicant submits and may
grant conditional approval for Federal authorization,
conditioned on the verification of such data by subsequent
onsite inspection. FERC also would be directed to track, and
make available to the public on its website, information
related to the review of applications requiring multiple
Federal authorizations.
Sec. 1102. Resolving environmental and grid reliability conflicts
This section would resolve conflicts between the Federal
Power Act and environmental laws and regulations in order to
avoid forcing electric generators from choosing between
complying with an emergency order from the Department of Energy
(DOE) or violating an environmental obligation. Under current
law, if DOE orders a generating unit to operate pursuant to
section 202(c), such operation could conflict with
environmental requirements, and the owner of the unit would
have to choose between violating an order from DOE and
violating the environmental requirement. If the owner of the
generating unit chooses to comply with the section 202(c) order
to address the DOE-identified reliability emergency, the owner
could be fined or sued for non-compliance with an environmental
regulation, even though the party would not have violated the
regulation but for its compliance with the DOE order. Left
unresolved, the current statutory structure creates the
potential for conflicting legal mandates that could threaten
the reliability of the grid.
To ensure that the tools needed to maintain the reliability
of the grid are available and effective despite potentially
conflicting environmental requirements, H.R. 8 amends section
202(c) of the FPA to clarify that when a party is under an
emergency directive to operate pursuant to section 202(c), it
will not be deemed in violation of environmental laws or
regulations or subject to civil or criminal liability, or
citizen enforcement actions, as a result of actions taken that
are necessary to comply with a DOE-issued emergency order.
Sec. 1103. Emergency preparedness for energy supply disruptions
This section would include the finding that recent natural
disasters have underscored the importance of having resilient
oil and natural gas infrastructure and effective ways for
industry and government to communicate to address energy supply
disruptions. This section also would direct the Secretary of
Energy to develop and adopt procedures to enhance communication
and coordination between the DOE, Federal partners, State and
local government, and the private sector to improve emergency
response and recovery.
Sec. 1104. Critical electric infrastructure security
This section would establish a new section 215A of the
Federal Power Act that:
Provides the Secretary of Energy the
authority to address grid security emergencies if the
President provides a written directive or determination
identifying a grid security emergency. The Secretary is
authorized to take emergency measures to protect the
bulk power system or defense critical electric
infrastructure, including ordering critical electric
infrastructure owners and operators to take appropriate
actions, with such measures to expire no later than
fifteen days from issuance; and
Facilitates the protection and voluntary
sharing of critical electric infrastructure information
between private sector asset owners and the Federal
government by: (1) exempting designated Critical
Electric Infrastructure Information from certain
Federal and State disclosure laws for a period up to
five years; (2) requiring FERC to facilitate voluntary
information sharing between Federal, State, local and
tribal authorities, the Electric Reliability
Organization, regional entities, and owners, operators
and users of the bulk-power system in the U.S.; and (3)
establishing sanctions for the unauthorized disclosure
of shared information.
Sec. 1105. Strategic transformer reserve
This section would require DOE to submit a plan to Congress
evaluating the feasibility of establishing a Strategic
Transformer Reserve for the storage, in strategically-located
facilities, of spare large power transformers and emergency
mobile substations in sufficient numbers to temporarily replace
critically damaged large power transformers and substations.
Strategically-located spare large power transformers and
emergency mobile substations will diminish the vulnerability of
the United States to multiple risks facing electric grid
reliability, including physical attack, cyber-attack,
electromagnetic pulse, geomagnetic disturbances, severe
weather, and seismic events.
Sec. 1106. Cyber sense
This section would direct DOE to establish a voluntary
Cyber Sense program to identify and promote cyber-secure
products and technologies intended for use in the bulk-power
system, including products relating to industrial control
systems, such as supervisory control and data acquisition
systems.
Sec. 1107. State coverage and consideration of PURPA standards for
electric utilities
This section would direct electric utilities and State
public utility commissions to consider:
Increasing the utilization of, and cost
recovery for, resiliency-related technologies designed
to improve the resilience of electric infrastructure,
mitigate power outages, continue delivery of vital
services, and maintain the flow of power to facilities
critical to public health, safety, and welfare;
Promoting investments in advanced energy
analytics technology for the purposes of realizing
operational efficiencies, cost savings, enhanced energy
management and customer engagement, improvements in
system reliability, safety, and cybersecurity, or other
benefits to ratepayers. For the purposes of financial
accounting, the Financial Accounting Standards Board
has recognized the changing technology landscape of
Internet-based and cloud-based computing solution and
subscription licensing models, and issued a new
standard entitled ``Customer's Accounting for Fees Paid
in a Cloud Computing Arrangement'' (ASU No. 2015-05).
This subsection recognizes the need for State
regulatory authorities to update their regulatory
accounting to provide appropriately for recovery and a
reasonable rate of return for such technologies,
solutions, and models. Regulatory accounting practices
differ from financial accounting practices, but there
is a clear interest in updating both practices;
Adopting or modifying policies to ensure the
incorporation of sufficient reliable generation into
integrated resource plans to assure the reliable
availability of electric energy over a ten-year
planning period; and
Impacts of subsidizing the deployment,
construction, maintenance, or operation of a customer-
side technology; including costs and benefits, resource
utilization, fuel diversity, and grid security.
Sec. 1108. Reliability analysis for certain rules that affect electric
generating facilities
This section would require the FERC, in coordination with
the Electric Reliability Organization, to complete an
independent reliability analysis of any proposed or final
``billion dollar'' Federal rule that affects electric
generating units. The reliability analysis must evaluate the
potential impacts of the rule on: (1) electric reliability and
resource adequacy; (2) the electricity generation portfolio of
the United States; (3) the operation of wholesale electricity
markets; and (4) energy delivery and infrastructure, including
electric transmission facilities and natural gas pipelines.
Section 1109. Carbon capture, utilization, and sequestration
technologies
This section would permit the continued cost-competitive
use of coal by advancing clean coal research and technology--
specifically carbon capture, utilization, and sequestration
(CCUS) technologies--towards large scale demonstration and
commercial use. This section also would increase accountability
at DOE with respect to CCUS research by directing the agency to
evaluate all CCUS projects that have been awarded funds by DOE
every two years.
Section 1110. Reliability and Performance Assurance in
Regional Transmission Organizations:
This section would amend the Federal Power Act to require
each regional transmission organization (RTO) and independent
system operator (ISO) that operates a capacity market to
provide to FERC an analysis of: (1) how such market utilizes
competitive market forces in procuring capacity resources, and
(2) whether the structure of such market includes resource-
neutral performance criteria that ensure the procurement of
sufficient capacity from physical generation facilities that
have certain reliability attributes, such as fuel on-site, dual
fuel capability, and contractual obligations that ensure
adequate fuel supply to enable operation for an extended period
of time. After such an analysis is submitted, FERC is required
to submit to Congress a report containing an evaluation of
whether the structure of such market, as detailed in the
analysis, meets the required criteria and, if it does not,
provide recommendations with respect to the procurement of
sufficient capacity meeting the identified reliability
attributes.
Subtitle B--Energy Security and Infrastructure Modernization
Sec. 1201. Energy Security and Infrastructure Modernization Fund
This section would establish a budget-neutral Energy
Security and Infrastructure Modernization Fund to (1) provide
for the construction, maintenance, repair, and replacement of
Strategic Petroleum Reserve facilities; (2) establish a grant
program to States to offset rate increases to low income
customers for upgrades the natural gas distribution system; and
(3) establish a competitive grant program to provide grants to
States, units of local government, and Indian tribe economic
development entities to enhance the resilience and reliability
of the electric grid. The Secretary of Energy would be
authorized to drawdown and sell crude oil from the Strategic
Petroleum Reserve to reinvest in energy security for the United
States.
Subtitle C--Hydropower Regulatory Modernization
Sec. 1301. Hydroelectric production and efficiency incentives
This section would amend the Energy Policy Act of 2005 to
reauthorize through fiscal year (FY) 2025 the program of
hydroelectric production incentives and incentive payments to
the owners or operators of hydroelectric facilities at existing
dams to make capital improvements directly related to improving
efficiency.
Sec. 1302. Protection of private property rights in hydropower
licensing
This section would amend the Federal Power Act to require
FERC to minimize infringement on the exercise and enjoyment of
property rights in issuing hydropower licenses. It also
requires the licensee, in developing any recreational resource
within the project boundary, to consider private landownership
as a means to encourage and facilitate private investment,
increased tourism, and recreational use.
Sec. 1303. Extension of time for FERC project involving W. Kerr Scott
Dam
This section would authorize FERC to extend the project
start time for construction of the W. Kerr Scott Dam in North
Carolina for six years.
Sec. 1304. Hydropower licensing and process improvement
This section would designate the Federal Energy Regulatory
Commission as the lead agency for purposes of compliance with
the National Environmental Policy Act, with respect to all
Federal licenses, permits, and other approvals needed for non-
Federal hydropower projects under Federal law. It requires FERC
to develop a schedule, in consultation with Federal and State
agencies and Indian tribes, with respect to such Federal
authorizations, and it directs agencies and tribes to comply
with the schedule. Under this section, FERC is required to
promulgate regulations, after notice and opportunity for public
comment, governing the procedures for developing the schedule
for Federal authorizations in each individual proceeding,
including measures for dispute resolution. The section also
authorizes (but does not require) applicants for a FERC license
to provide direct funding to third party contractors to assist
agencies and tribes in their review of license applications.
The new section 34(f) of the Federal Power Act would
authorize, but not require, applicants for a Federal
authorization to fund a third party contractor selected by the
permitting agency or tribe to assist in reviewing the
application. This provision is intended to facilitate the
timely processing of applications in cases where the permitting
agency or tribe may otherwise have difficulty meeting the
deadlines set forth in FERC's schedule and the applicant is
willing and able to provide additional funding. It is intended
to supplement, not supplant, agency budgets. The bill provides
that costs directly funded by the applicant shall not also be
collected through annual charges under section 10(e) of the
FPA, to prevent collecting twice for the same costs.
Sec. 1305. Judicial review of delayed federal authorizations
This section would add a new section 313(b)(2) to the
Federal Power Act to extend jurisdiction to the U.S. courts of
appeals to rule upon petitions, filed by a Federal, State, or
local government agency or Indian tribe, for additional time to
complete their final disposition of a Federal authorization
required for the licensing, construction, operation, or
maintenance of a jurisdictional non-Federal hydropower project.
New section 313(b)(2) would authorize the court to grant
extensions of up to ninety days for the agency or tribe to
complete its disposition of a Federal authorization. If the
court denies the extension, or if the agency or tribe fails to
file for an extension and also fails to complete a timely
disposition of the Federal authorization, the bill provides
that the Commission and the applicant may move forward with the
proposed action. This is intended to allow the Commission to
issue a license in a case where a Federal authorization that
would otherwise have been a prerequisite for Commission action
was not issued in a timely manner, thus preventing unreasonable
delay of the Commission license. In such cases, as well as
circumstances in which a Federal authorization is not a
prerequisite to Commission action, but would otherwise be
required for the applicant to construct, operate, or maintain
the project, the applicant will be able to proceed based
exclusively on the FERC license and any timely Federal
authorizations.
Sec. 1306. Licensing study improvements
This section would make the licensing study process more
efficient by requiring FERC to compile current and accepted
best practices for licensing studies, and to develop a
collection of existing studies and data that could be used to
inform licensing proceedings. This section also requires FERC
and other agencies to use current, accepted science in support
of their Federal authorizations concerning hydropower
applications, and to demonstrate that any requested new studies
is not duplicative of current, existing studies that could be
used. Finally, this section establishes a voluntary program for
reviewing hydropower projects on a basin-wide scale.
Sec. 1307. Closed loop pumped storage projects
Section 1307 would add a new section 36 to the Federal
Power Act, which recognizes that closed-loop pumped storage
projects are essential to energy storage and grid reliability
and, as specialized facilities serving a specific purpose,
should not be subjected to the comprehensive development
licensing standards and requirements of the Federal Power Act
that apply to conventional hydropower projects. In lieu of such
standards and requirements, section 1307 authorizes the
inclusion in any license or Federal authorization for a closed-
loop pumped storage project only such measures that are
necessary to protect public safety, or to prevent or mitigate
adverse effects to fish and wildlife resources caused by the
construction and operation of the project. Section 1307 would
also facilitate the development of closed-loop pumped storage
projects, which are often large, capital intensive projects
that may benefit from public-private partnerships and other
creative financing mechanisms by creating an exception to
FERC's policy regarding ``abuse of municipal preference.''
Pursuant to this provision, where the preliminary permittee or
the licensee has claimed municipal preference under section
7(a) of the Act, section 1307 would authorize the Commission to
approve the addition of joint permittees to an existing
preliminary permit or transfer a license to one or more
entities as co-licensee with a municipality, regardless of
whether the partnering entities are municipalities or non-
municipalities.
Sec. 1308. License amendment improvements:
This section would establish an expeditious process for
FERC's review of license amendment applications that would
provide a public benefit (e.g., recreation, environmental
enhancement, or increased renewable energy development), with
insignificant or minimal environmental effects. The program
establishes deadlines for FERC and agency actions, and it
focuses conditioning authority to address only impacts related
to the amendment proposal. In addition, this section requires
FERC to undertake a rulemaking, following notice and
opportunity for public comment, to promulgate new standards and
procedures for license amendment applications generally. The
new standards and procedures must be commensurate with the
range of differences in environmental impacts associated with
various license amendment proposals.
Sec. 1309. Promoting hydropower development at existing non-powered
dams
This section would facilitate the development of new
hydropower infrastructure at existing non-powered dams by
authorizing FERC to issue exemptions for qualifying facilities.
To qualify under this section, a new hydropower facility must
be located at an existing non-powered dam or similar
infrastructure and must not, among other criteria, materially
change release regimes or operations of the existing non-
powered dam or other infrastructure.
TITLE II--21st CENTURY WORKFORCE
Sec. 2101. Energy and manufacturing workforce development
This section would direct the Secretary of Energy to
establish a comprehensive program to improve education and
training for energy and manufacturing-related jobs. This
section would direct the Secretary to collaborate with
representatives from the energy and manufacturing industry to
identify the areas of highest need, including operations
scheduled for closure, and develop guidelines for the skills
necessary to enter the workforce. The Secretary also would be
directed to provide direct assistance to schools, community
colleges, workforce development organizations, non-profit
organizations, labor organizations, apprenticeship programs,
and minority serving institutions to carry out the program
established in this section. This section also would provide
special consideration for increasing outreach to employers and
job trainers preparing displaced and unemployed energy and
manufacturing workers to re-enter the workforce.
TITLE III--ENERGY SECURITY AND DIPLOMACY
Sec. 3101. Sense of Congress
This section would provide several findings, including: 1)
North America's energy revolution has significantly enhanced
energy security in the United States and fundamentally changed
the Nation's energy future from that of scarcity to abundance;
2) North America's energy abundance has increased global energy
supplies and reduced the price of energy for consumers in the
United States and abroad; 3) allies and trading partners of the
United States, including in Europe and Asia, are seeking stable
and affordable energy supplies from North America to enhance
their energy security; 4) the United States has an opportunity
to promote greater stability and affordability of energy
supplies for its allies and trading partners through a more
integrated, secure, and competitive North American energy
system; and 5) the United States also has an opportunity to
promote such objectives through greater Federal agency
coordination relating to regulations or agency actions that
significantly affect the supply, distribution, or use of
energy.
Sec. 3102. Energy security valuation
This section would direct the Secretary of Energy, in
collaboration with the Secretary of State, to establish U.S.
energy security valuation methods to ensure that energy-related
actions that significantly affect the supply, distribution, or
use of energy are evaluated with respect to their potential
impact on energy security, including their impact on consumers
and the economy; energy supply, diversity, and resiliency;
well-functioning and competitive energy markets; United States
trade balance; and national security objectives.
Sec. 3103. North American energy security plan
This section would direct the Secretary of Energy, in
collaboration with the Secretary of State, to report to
Congress with a plan to improve planning and coordination with
Canada and Mexico to enhance energy integration, strengthen
North American energy security, and promote efficiencies; and
improve collaboration with Caribbean and Central American
partners on energy security.
Sec. 3104. Collective energy security
This section would direct the Secretary of Energy, in
collaboration with the Secretary of State, to convene at least
one Trans-Atlantic and one Trans-Pacific forum to foster
dialogue among the governments of U.S. allies and trading
partners, independent experts, and industry representatives
with the goal to promote energy security.
Sec. 3105. Strategic Petroleum Reserve mission readiness plan
In seeking to ensure that the nation's strategic stockpiles
of petroleum are kept safely and readily accessible in times of
national emergency, this section would direct DOE to conduct a
long-range strategic review to specify the near and long-term
roles of the Strategic Petroleum Reserve and recommend an
action plan to achieve the optimal 1) capacity, location, and
composition of petroleum products in the Reserve; and, 2)
storage and distributional capabilities.
Sec. 3006. Authorization to export natural gas
This section would streamline the regulatory process for
authorizing U.S. LNG exports by establishing a thirty day
deadline for DOE to act on applications at the conclusion of
the review required by the National Environmental Policy Act.
TITLE IV--ENERGY EFFICIENCY AND ACCOUNTABILITY
Subtitle A--Energy Efficiency
CHAPTER 1--FEDERAL AGENCY ENERGY EFFICIENCY
Sec. 4111. Energy-efficient and energy-saving information technologies
This section would require Federal agencies to coordinate
with the Office of Management and Budget (OMB), DOE, and the
Environmental Protection Agency (EPA) to develop an
implementation strategy--including best practices and
measurement and verification techniques--for the maintenance,
purchase, and use of energy-efficient and energy saving
information technologies. OMB would be required to track and
report on each agency's progress.
Sec. 4112. Energy efficient data centers
This section would improve the energy efficiency of Federal
data centers by, among other items, requiring DOE to update a
2007 report on data center energy efficiency and maintain a
data center energy practitioner certification program. DOE also
would establish an open data initiative to help share best
practices and support further innovation, and develop a metric
that measures data center energy efficiency.
Sec. 4113. Report on energy and water savings potential from thermal
insulation
This section would direct DOE to submit a report within one
year on the impact of thermal insulation on both energy and
water use systems for potable hot and chilled water in Federal
buildings and on the return on investment of installing the
insulation. The report must include: (1) an analysis based on
the cost of municipal or regional water for delivered water and
the avoided cost of new water; and (2) a summary of energy and
water savings, including short-term and long-term (twenty
years) projections of such savings.
Sec. 4114. Federal purchase requirement
This section would expand the definition of ``renewable
energy'' in section 203 of the Energy Policy Act of 2005 to
include thermal energy and qualified waste heat resources. In
addition, the amendment clarifies that a Federal agency can
continue to take credit for purchasing energy generated from a
waste-to-energy facility so long as the waste feedstock used to
generate electricity is collected separately from recyclable
paper and processed in a way that keeps the paper segregated
from non-recyclable waste. In using the term ``collected
separately'' the Committee intends the term to have the same
meaning as ``separate collection'' used in 40 C.F.R.
246.101(z), EPA's guidelines applicable to source separation of
residential, commercial, and industrial solid wastes. The
Committee, however, recognizes that even when garbage is
collected separately from commonly recycled paper, there will
always be some paper mixed in with garbage. The Committee
included language to make clear that in cases where garbage and
recyclable paper are collected and processed separately, the
separately collected municipal solid waste when used as a
feedstock for generating electricity is considered renewable
energy even if it contains incidental commonly recycled paper.
The Committee also recognizes that in some cases, facilities
are required under contract to segregate certain types of paper
such as currency, sensitive legal documents, and medical
documents for assured destruction through incineration. In such
cases, the Committee intends that any energy purchased by a
Federal department, from a facility required to burn such paper
for assured destruction, is renewable energy. Also, the
Committee clarifies that this provision does not require any
community to collect recyclable paper separately from trash or
change any of its waste collection or processing requirements
or systems.
Sec. 4115. Energy performance requirement for federal buildings
This section would, in part, repeal a provision included in
section 433 of the Energy Independence and Security Act of 2007
that requires a 100 percent reduction in ``fossil fuel-
generated energy,'' such as coal and natural gas, in all new
and modified Federal buildings by the year 2030. In addition
this section would:
Extend existing Federal building energy
efficiency improvement targets;
Require DOE to review the results of the
implementation of the energy performance requirements
and to analyze the cost-effectiveness and feasibility
of extending the energy savings targets; and
Require Federal energy managers to provide,
as part of their compliance certifications, an
explanation regarding any life-cycle cost-effective
energy-saving or water-saving measures that have not
been implemented.
Sec. 4116. Federal building energy efficiency performance standards;
certification system and level for Federal buildings
This section would expand the scope of existing energy
standards for new Federal buildings to cover major renovations.
It also would ensure that significant alterations and additions
to Federal buildings (i.e., major renovations) meet minimum
efficiency levels unless demonstrated not to be life-cycle
cost-effective. Also, it would require the use of commissioning
of large Federal buildings to ensure that their energy systems
are operating as designed.
Sec. 4117. Operation of battery recharging stations in parking areas
used by Federal employees
This section would authorize the head of any office of the
Federal Government, which owns or operates a parking area for
the use of its employees, to install, construct, operate, and
maintain a battery recharging station in such area for the use
of its employees; and shall charge fees to users in amounts
necessary to ensure that office recovers all costs incurred in
installing, constructing, operating, and maintaining the
station.
CHAPTER 2--ENERGY EFFICIENT TECHNOLOGY AND MANUFACTURING
Sec. 4121. Inclusion of smart grid capability on energy guide labels
This section would direct the Federal Trade Commission to
initiate a rulemaking to develop Energy Guide labels that
promote the smart grid capabilities of certain products.
Sec. 4122. Voluntary verification programs for air conditioning,
furnace, boiler, heat pump, and water heater products
This section requires the DOE to recognize voluntary
verification programs for air conditioning, furnace, boiler,
heat pump, and water heating products to demonstrate compliance
with DOE energy efficiency and conservation standards and the
Energy Star program.
Sec. 4123. Facilitating consensus furnace standards
This section would provide gas furnace stakeholders the
opportunity to continue negotiations to facilitate the proposal
for adoption of gas furnace standards that enjoy consensus
support, while not delaying the current rulemaking, except to
the extent necessary to provide such opportunity.
Sec. 4124. Future of industry program
This section would direct DOE-funded higher education-based
Industrial Assessment Centers (IACs) to identify opportunities
for optimizing energy efficiency and environmental performance,
including implementation of information technology advancements
for supply chain analysis, logistics, system monitoring, and
industrial and manufacturing processes. IACs also would be
directed to coordinate with the Manufacturing Extension
Partnership Centers of the National Institute of Standards and
Technology and DOE's Building Technologies Program to increase
partnerships with the national laboratories and energy service
and technology providers to leverage private sector expertise.
Sec. 4125. No warranty for certain certified energy star products
This section would promote continued development of energy
efficient appliances through the Energy Star Program by
deterring class action lawsuits that could undermine
participation in the program.
Sec. 4126. Clarification to effective date for regional standards
This section would replace the ``installed by'' date with
the ``manufactured by'' date for purposes of the enforcement
scheme for residential heating and cooling appliances subject
to regional energy efficiency standards. This change would
minimize inventory and forecasting problems for equipment
contractors, distributors, and manufacturers if DOE sets
regional energy conservation standards for furnaces, central
air conditioners, and heat pumps.
Sec. 4127. Internet of things report
This section would require the Secretary of Energy to
report to Congress on the efforts made to take advantage of,
and promote, the utilization of advanced technologies such as
``Internet of Things'' end-to-end platform solutions to provide
real-time actionable analytics and enable predictive
maintenance and asset management to improve energy efficiency.
CHAPTER 3--ENERGY PERFORMANCE CONTRACTING
Sec. 4131. Use of energy and water efficiency measures in federal
buildings
This section would:
Require DOE to report on the status of each
Federal agency's energy savings performance contracts
and utility energy service contracts, the investment
value of such contracts, the guaranteed energy savings
for the previous year as compared to the actual energy
savings for the previous year, the plan for entering
into such contracts in the coming year, and information
explaining why any previously submitted plans for such
contracts were not implemented;
Prohibit Federal agencies from limiting the
recognition of operation and maintenance savings
associated with systems modernized or replaced with the
implementation of energy conservation measures, water
conservation measures, or any series of energy
conservation measures and water conservation measures;
Clarify that Federal agency payments of
energy, water, and wastewater treatment expenses,
pursuant to an energy savings performance contract or
utility energy service contracts shall include related
operation and maintenance expenses; and
Revise the definition of ``energy savings''
to include (1) the use, sale, or transfer of energy
incentives, rebates, or credits (including renewable
energy credits) from governments or utilities; and (2)
any revenue generated from a reduction in energy or
water use, more efficient waste recycling, or
additional energy generated from more efficient
equipment.
CHAPTER 4--SCHOOL BUILDINGS
Sec. 4141. Coordination of energy retrofitting assistance for schools
This section would amend the Energy Policy and Conservation
Act (EPCA) to direct DOE to establish a clearinghouse to
disseminate information regarding available programs and
financing mechanisms that could be used to help initiate,
develop, and finance energy efficiency, distributed generation,
and energy retrofitting projects for schools. DOE would be
required to: (1) consult with appropriate agencies to develop a
list of programs and financing mechanisms that are, or may be,
used for the projects, and (2) coordinate with appropriate
agencies to develop a collaborative education and outreach
effort to streamline communications and promote the programs
and financing mechanisms.
CHAPTER 5--BUILDING ENERGY CODES
Sec. 4151. Greater energy efficiency in building codes
This section would increase transparency and cost-
effectiveness in the development of model building energy
codes, which set the baseline for energy efficiency in
buildings, by ensuring that DOE code change proposals: 1) are
made available to the public, including calculations on costs
and savings; 2) are subject to the official rulemaking process,
allowing for public comment; and 3) take into account small
business concerns. This section also would prohibit DOE from
advocating for certain technologies, building materials or
construction practices and requires that any code or proposal
supported by the DOE has a payback of ten years or less. For
purposes of the feasibility study, it is the Committee's intent
that the term ``Zero-Net Energy'' is defined as an energy-
efficient building where the actual annual source energy
consumption is balanced by on-site energy production.
Sec. 4152. Voluntary nature of building asset rating program
This section would clarify that any DOE program that may
enable the owner of a commercial building or a residential
building to obtain a rating, score, or label regarding the
actual or anticipated energy usage or performance of a building
shall be made available on a voluntary, optional, and market-
driven basis.
CHAPTER 6--EPCA TECHNICAL CORRECTIONS AND CLARIFICATIONS
Sec. 4161. Modifying product definitions
This section would amend the Energy Policy and Conservation
Act to permit, if there is stakeholder consensus, DOE to
prospectively revise product definitions relating to appliance
energy conservation standards for residential and commercial
products for purposes of standards, test procedures, labeling
and preemption. Under current law, certain definitions cannot
be changed without statutory change.
Sec. 4162. Clarifying rulemaking procedures
This section would state that all DOE
product standards must be based and rationalized on a
final revised test procedure, if any, and that the
public shall have at least 180 days between the
publication of a final revised test procedure and the
end of the public comment period for a proposed product
standard to analyze, test and comment on its
implications. The provision would allow for an
exception for consensus developed revised test
procedures.
Consistent with the interest in having early
stakeholder input, this section also would require DOE
to provide pre-proposed rule public input on design
options and voluntary non-regulatory options. In
addition, this section would require the identification
of significant groups of consumers and manufacturers
who merit analysis, among other relevant issues.
This section also would require DOE, in a
notice of proposed rulemaking, to:
Seek comment and determine whether its
technical and economic assumptions, methods,
and models used to justify a standard are
justified and available and accessible for
public review, analysis, and use; and
Take into account the cumulative regulatory
impact on product manufacturers of other
government standards affecting energy use and
other energy conservation standards affecting
the same manufacturers.
CHAPTER 7--ENERGY AND WATER EFFICIENCY
Sec. 4171. Smart energy and water efficiency pilot program
This section would authorize a pilot program to increase
the effectiveness of water distribution networks by delivering
better quality water while using less energy. Under the pilot
program, a utility, municipality, water district, or other
authority that provides drinking water, water recycling, or
water reuse services would be able to compete for DOE project
funds. Competitive grant selections for these projects will be
based on a project's anticipated energy and costs savings; the
novelty of technology employed; how well it integrates next
generation sensors, software, analytics, and management tools;
the predicted cost-effectiveness of the project due to energy
efficiency savings, water savings or reuse, and averted
infrastructure costs; and how the technology can be scalable
and deployed across geographic regions.
Sec. 4172. WaterSense
This section would codify the voluntary WaterSense program
at EPA. It specifies the categories of products that are
eligible for WaterSense listing and also the guidelines for
developing criteria and reviewing standards. It also clarifies
the distinction of authorities between the WaterSense and
Energy Star programs should any product be eligible under both
programs.
Subtitle B--Accountability
CHAPTER 1--MARKET MANIPULATION, ENFORCEMENT, AND COMPLIANCE
Sec. 4211. FERC Office of Compliance Assistance and Public
Participation
This section would require FERC to establish an Office of
Compliance Assistance and Public Participation headed by a
Director who shall be responsible for promoting improved
compliance with Commission rules and orders by, among other
things, providing entities regulated by the Commission the
opportunity to obtain timely compliance guidance; making
recommendations with respect to market behavior and
enforcement; issuing reports and guidance; and performing
outreach to regulated community.
CHAPTER 2--MARKET REFORMS
Sec. 4221. GAO Study on wholesale electricity markets
This section would require the Government Accountability
Office to study whether and how the market rules, practices,
and structures of regional transmission organizations produce
rates that are just and reasonable.
Sec. 4222. Clarification of facility merger authorization
This section would amend section 203 of the Federal Power
Act to include a minimum monetary threshold of $10,000,000 for
merger and consolidation ``acquisitions'' of FERC-
jurisdictional electric transmission facilities. Doing so would
mirror the existing $10,000,000 minimum monetary threshold set
forth in the other three subsections of section 203. This
amendment would require FERC to restore a previous and long-
standing, minimum monetary threshold applied to public
utilities' acquisitions and dispositions of FERC-jurisdictional
electric transmission facilities, would correct an apparent
oversight that resulted in Congress's intent in EPAct 2005 not
being completely enacted by the Commission, and would increase
administrative efficiency by ensuring that FERC reviews only
those proposed transactions concerning FERC-jurisdictional
facilities that are materially significant.
CHAPTER 3--CODE MAINTENANCE
This chapter would repeal various obsolete statutes.
CHAPTER 4--USE OF EXISTING FUNDS
Sec. 4261. Use of existing funds
This section states that amounts required for carrying out
this Act, other than section 1201, shall be derived from
amounts appropriated under authority provided by previously
enacted law.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
NATURAL GAS ACT
* * * * * * *
exportation or importation of natural gas; lng terminals
Sec. 3. (a) After six months from the date on which this act
takes effect no person shall export any natural gas from the
United States to a foreign country or import any natural gas
from a foreign country without first having secured an order of
the Commission authorizing it to do so. The Commission shall
issue such order upon application, unless, after opportunity
for hearing, it finds that the proposed exportation or
importation will not be consistent with the public interest.
The Commission may by its order grant such application, in
whole or in part, with such modification and upon such terms
and conditions as the Commission may find necessary or
appropriate, and may from time to time, after opportunity for
hearing, and for good cause shown, make such supplemental order
in the premises as it may find necessary or appropriate.
(b) With respect to natural gas which is imported into the
United States from a nation with which there is in effect a
free trade agreement requiring national treatment for trade in
natural gas, and with respect to liquefied natural gas--
(1) the importation of such natural gas shall be
treated as a ``first sale'' within the meaning of
section 2(21) of the Natural Gas Policy Act of 1978;
and
(2) the Commission shall not, on the basis of
national origin, treat any such imported natural gas on
an unjust, unreasonable, unduly discriminatory, or
preferential basis.
(c) For purposes of subsection (a), the importation of the
natural gas referred to in subsection (b), or the exportation
of natural gas to a nation with which there is in effect a free
trade agreement requiring national treatment for trade in
natural gas, shall be deemed to be consistent with the public
interest, and applications for such importation or exportation
shall be granted without modification or delay.
(d) Except as specifically provided in this Act, nothing in
this Act affects the rights of States under--
(1) the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.);
(2) the Clean Air Act (42 U.S.C. 7401 et seq.); or
(3) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.).
(e)(1) The Commission shall have the exclusive authority to
approve or deny an application for the siting, construction,
expansion, or operation of an LNG terminal. Except as
specifically provided in this Act, nothing in this Act is
intended to affect otherwise applicable law related to any
Federal agency's authorities or responsibilities related to LNG
terminals.
(2) Upon the filing of any application to site, construct,
expand, or operate an LNG terminal, the Commission shall--
(A) set the matter for hearing;
(B) give reasonable notice of the hearing to all
interested persons, including the State commission of
the State in which the LNG terminal is located and, if
not the same, the Governor-appointed State agency
described in section 3A;
(C) decide the matter in accordance with this
subsection; and
(D) issue or deny the appropriate order accordingly.
(3)(A) Except as provided in subparagraph (B), the Commission
may approve an application described in paragraph (2), in whole
or part, with such modifications and upon such terms and
conditions as the Commission find necessary or appropriate.
(B) Before January 1, 2015, the Commission shall not--
(i) deny an application solely on the basis that the
applicant proposes to use the LNG terminal exclusively
or partially for gas that the applicant or an affiliate
of the applicant will supply to the facility; or
(ii) condition an order on--
(I) a requirement that the LNG terminal offer
service to customers other than the applicant,
or any affiliate of the applicant, securing the
order;
(II) any regulation of the rates, charges,
terms, or conditions of service of the LNG
terminal; or
(III) a requirement to file with the
Commission schedules or contracts related to
the rates, charges, terms, or conditions of
service of the LNG terminal.
(C) Subparagraph (B) shall cease to have effect on January 1,
2030.
(4) An order issued for an LNG terminal that also offers
service to customers on an open access basis shall not result
in subsidization of expansion capacity by existing customers,
degradation of service to existing customers, or undue
discrimination against existing customers as to their terms or
conditions of service at the facility, as all of those terms
are defined by the Commission.
(f)(1) In this subsection, the term ``military
installation''--
(A) means a base, camp, post, range, station, yard,
center, or homeport facility for any ship or other
activity under the jurisdiction of the Department of
Defense, including any leased facility, that is located
within a State, the District of Columbia, or any
territory of the United States; and
(B) does not include any facility used primarily for
civil works, rivers and harbors projects, or flood
control projects, as determined by the Secretary of
Defense.
(2) The Commission shall enter into a memorandum of
understanding with the Secretary of Defense for the purpose of
ensuring that the Commission coordinate and consult with the
Secretary of Defense on the siting, construction, expansion, or
operation of liquefied natural gas facilities that may affect
an active military installation.
(3) The Commission shall obtain the concurrence of the
Secretary of Defense before authorizing the siting,
construction, expansion, or operation of liquefied natural gas
facilities affecting the training or activities of an active
military installation.
(g) Public Disclosure of LNG Export Destinations.--As a
condition for approval of any authorization to export LNG, the
Secretary of Energy shall require the applicant to publicly
disclose the specific destination or destinations of any such
authorized LNG exports.
* * * * * * *
process coordination; hearings; rules of procedure
Sec. 15. (a) In this section, the term ``Federal
authorization''--
(1) means any authorization required under Federal
law with respect to an application for authorization
under section 3 or a certificate of public convenience
and necessity under section 7; and
(2) includes any permits, special use authorizations,
certifications, opinions, or other approvals as may be
required under Federal law with respect to an
application for authorization under section 3 or a
certificate of public convenience and necessity under
section 7.
(b) Designation as Lead Agency.--
(1) In general.--The Commission shall act as the lead
agency for the purposes of coordinating all applicable
Federal authorizations and for the purposes of
complying with the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
[(2) Other agencies.--Each Federal and State agency
considering an aspect of an application for Federal
authorization shall cooperate with the Commission and
comply with the deadlines established by the
Commission.]
(2) Other agencies.--
(A) In general.--Each Federal and State
agency considering an aspect of an application
for Federal authorization shall cooperate with
the Commission and comply with the deadlines
established by the Commission.
(B) Identification.--The Commission shall
identify, as early as practicable after it is
notified by a prospective applicant of a
potential project requiring Commission
authorization, any Federal or State agency,
local government, or Indian tribe that may
consider an aspect of an application for that
Federal authorization.
(C) Notification.--
(i) In general.--The Commission shall
notify any agency identified under
subparagraph (B) of the opportunity to
cooperate or participate in the review
process.
(ii) Deadline.--A notification issued
under clause (i) shall establish a
deadline by which a response to the
notification shall be submitted, which
may be extended by the Commission for
good cause.
(c) Schedule.--
(1) Commission authority to set schedule.--The
Commission shall establish a schedule for all Federal
authorizations. In establishing the schedule, the
Commission shall--
(A) ensure expeditious completion of all such
proceedings; [and]
(B) set deadlines for all such Federal
authorizations; and
[(B)] (C) comply with applicable schedules
established by Federal law.
[(2) Failure to meet schedule.--If a Federal or State
administrative agency does not complete a proceeding
for an approval that is required for a Federal
authorization in accordance with the schedule
established by the Commission, the applicant may pursue
remedies under section 19(d).]
(2) Deadline for federal authorizations.--A final
decision on a Federal authorization is due no later
than 90 days after the Commission issues its final
environmental document, unless a schedule is otherwise
established by Federal law.
(3) Concurrent reviews.--Each Federal and State
agency considering an aspect of an application for a
Federal authorization shall--
(A) carry out the obligations of that agency
under applicable law concurrently, and in
conjunction, with the review required by the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.), unless doing so would
impair the ability of the agency to conduct
needed analysis or otherwise carry out those
obligations;
(B) formulate and implement administrative,
policy, and procedural mechanisms to enable the
agency to ensure completion of required Federal
authorizations no later than 90 days after the
Commission issues its final environmental
document; and
(C) transmit to the Commission a statement--
(i) acknowledging receipt of the
schedule established under paragraph
(1); and
(ii) setting forth the plan
formulated under subparagraph (B) of
this paragraph.
(4) Issue identification and resolution.--
(A) Identification.--Federal and State
agencies that may consider an aspect of an
application for Federal authorization shall
identify, as early as possible, any issues of
concern that may delay or prevent an agency
from working with the Commission to resolve
such issues and granting such authorization.
(B) Issue resolution.--The Commission may
forward any issue of concern identified under
subparagraph (A) to the heads of the relevant
agencies (including, in the case of a failure
by the State agency, the Federal agency
overseeing the delegated authority) for
resolution.
(5) Failure to meet schedule.--If a Federal or State
agency does not complete a proceeding for an approval
that is required for a Federal authorization in
accordance with the schedule established by the
Commission under paragraph (1)--
(A) the applicant may pursue remedies under
section 19(d); and
(B) the head of the relevant Federal agency
(including, in the case of a failure by a State
agency, the Federal agency overseeing the
delegated authority) shall notify Congress and
the Commission of such failure and set forth a
recommended implementation plan to ensure
completion of the proceeding for an approval.
(d) Remote Surveys.--If a Federal or State agency considering
an aspect of an application for Federal authorization requires
the applicant to submit environmental data, the agency shall
consider any such data gathered by aerial or other remote means
that the applicant submits. The agency may grant a conditional
approval for Federal authorization, conditioned on the
verification of such data by subsequent onsite inspection.
(e) Application Processing.--The Commission, and Federal and
State agencies, may allow an applicant seeking Federal
authorization to fund a third-party contractor to assist in
reviewing the application.
(f) Accountability, Transparency, Efficiency.--For
applications requiring multiple Federal authorizations, the
Commission, with input from any Federal or State agency
considering an aspect of an application, shall track and make
available to the public on the Commission's website information
related to the actions required to complete permitting,
reviews, and other actions required. Such information shall
include the following:
(1) The schedule established by the Commission under
subsection (c)(1).
(2) A list of all the actions required by each
applicable agency to complete permitting, reviews, and
other actions necessary to obtain a final decision on
the Federal authorization.
(3) The expected completion date for each such
action.
(4) A point of contact at the agency accountable for
each such action.
(5) In the event that an action is still pending as
of the expected date of completion, a brief explanation
of the reasons for the delay.
[(d)] (g) Consolidated Record.--The Commission shall, with
the cooperation of Federal and State administrative agencies
and officials, maintain a complete consolidated record of all
decisions made or actions taken by the Commission or by a
Federal administrative agency or officer (or State
administrative agency or officer acting under delegated Federal
authority) with respect to any Federal authorization. Such
record shall be the record for--
(1) appeals or reviews under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.),
provided that the record may be supplemented as
expressly provided pursuant to section 319 of that Act;
or
(2) judicial review under section 19(d) of decisions
made or actions taken of Federal and State
administrative agencies and officials, provided that,
if the Court determines that the record does not
contain sufficient information, the Court may remand
the proceeding to the Commission for further
development of the consolidated record.
[(e)] (h) Hearings under this act may be held before the
Commission, any member or members thereof, or any
representative of the Commission designated by it, and
appropriate records thereof shall be kept. In any proceeding
before it, the Commission in accordance with such rules and
regulations as it may prescribe, may admit as a party any
interested State, State commission, municipality or any
representative of interested consumers or security holders, or
any competitor of a party to such proceeding, or any other
person whose participation in the proceeding may be in the
public interest.
[(f)] (i) All hearings, investigations, and proceedings under
this act shall be governed by rules of practice and procedure
to be adopted by the Commission, and in the conduct thereof the
technical rules of evidence need not be applied. No informality
in any hearing, investigation, or proceeding or in the manner
of taking testimony shall invalidate any order, decision, rule,
or regulation issued under the authority of this act.
* * * * * * *
----------
FEDERAL POWER ACT
PART I
* * * * * * *
Sec. 4. The Commission is hereby authorized and empowered--
(a) To make investigations and to collect and record data
concerning the utilization of the water resources of any region
to be developed, the water-power industry and its relation to
other industries and to interstate or foreign commerce, and
concerning the location, capacity, development cost, and
relation to markets of power sites, and whether the power from
Government dams can be advantageously used by the United States
for its public purposes, and what is a fair value of such
power, to the extent the Commission may deem necessary or
useful for the purposes of this Act.
(b) To determine the actual legitimate original cost of and
the net investment in a licensed project, and to aid the
Commission in such determinations, each licensee shall, upon
oath, within a reasonable period of time to be fixed by the
Commission, after the construction of the original project or
any addition thereto or betterment thereof, file with the
Commission in such detail as the Commission may require, a
statement in duplicate showing the actual legitimate original
cost of construction of such project, addition, or betterment,
and of the price paid for water rights, rights-of-way, lands,
or interest in lands. The licensee shall grant to the
Commission or to its duly authorized agent or agents, at all
reasonable times, free access to such project, addition, or
betterment, and to all maps, profiles, contracts, reports of
engineers, accounts, books, records, and all other papers and
documents relating thereto. The statement of actual legitimate
original cost of said project, and revisions thereof as
determined by the Commission, shall be filed with the Secretary
of the Treasury.
(c) To cooperate with the executive departments and other
agencies of State or National Governments in such
investigations; and for such purpose the several departments
and agencies of the National Government are authorized and
directed upon the request of the Commission to furnish such
records, papers, and information in their possession as may be
requested by the Commission, and temporarily to detail to the
Commission such officers or experts as may be necessary in such
investigations.
(d) To make public from time to time the information secured
hereunder and to provide for the publication of its reports and
investigations in such form and manner as may be best adapted
for public information and use. The Commission, on or before
the 3d day of January of each year, shall submit to Congress
for the fiscal year preceding a classified report showing the
permits and licenses issued under this Part, and in each case
the parties thereto, the terms prescribed, and the moneys
received if any, on account thereof.
(e) To issue licenses to citizens of the United States, or to
any association of such citizens, or to any corporation
organized under the laws of the United States or any State
thereof, or to any State or municipality for the purpose of
constructing, operating, and maintaining dams, water conduits,
reservoirs, power houses, transmission lines, or other project
works necessary or convenient for the development and
improvement of navigation and for the development,
transmission, and utilization of power across, along, from or
in any of the streams or other bodies of water over which
Congress has jurisdiction under its authority to regulate
commerce with foreign nations and among the several States, or
upon any part of the public lands and reservations of the
United States (including the Territories), or for the purpose
of utilizing the surplus water or water power from any
Government dam, except as herein provided: Provided, That
licenses shall be issued within any reservation only after a
finding by the Commission that the license will not interfere
or be inconsistent with the purpose for which such reservation
was created or acquired, and shall be subject to and contain
such conditions as the Secretary of the department under whose
supervision such reservation falls shall deem necessary for the
adequate protection and utilization of such
reservation:Provided further, That no license affecting the
navigable capacity of any navigable waters of the United States
shall be issued until the plans of the dam or other structures
affecting navigation have been approved by the Chief of
Engineers and the Secretary of the Army. Whenever the
contemplated improvement is, in the judgment of the Commission,
desirable and justified in the public interest for the purpose
of improving or developing a waterway or waterways for the use
or benefit of interstate or foreign commerce, a finding to that
effect shall be made by the Commission and shall become a part
of the records of the Commission: Provided further, That in
case the Commission shall find that any Government dam may be
advantageously used by the United States for public purposes in
addition to navigation, no license therefor shall be issued
until two years after it shall have reported to Congress the
facts and conditions relating thereto, except that this
provision shall not apply to any Government dam constructed
prior to June 10, 1920: And provided further, That upon the
filing of any application for a license which has not been
preceded by a preliminary permit under subsection (f) of this
section, notice shall be given and published as required by the
proviso of said subsection. In deciding whether to issue any
license under this Part for any project, the Commission, in
addition to the power and development purposes for which
licenses are issued, shall give equal consideration to the
purposes of energy conservation, the protection, mitigation of
damage to, and enhancement of, fish and wildlife (including
related spawning grounds and habitat), the protection of
recreational opportunities, [and] the preservation of other
aspects of environmental quality, and minimizing infringement
on the useful exercise and enjoyment of property rights held by
nonlicensees.
(f) To issue preliminary permits for the purpose of enabling
applicants for a license hereunder to secure the data and to
perform the acts required by section 9 hereof: Provided,
however, That upon the filing of any application for a
preliminary permit by any person, association or corporation
the Commission, before granting such application, shall at once
give notice of such application in writing to any State or
municipality likely to be interested in or affected by such
application; and shall also publish notice of such application
once each week for four weeks in a daily or weekly newspaper
published in the county or counties in which the project or any
part thereof or the lands affected thereby are situated.
(g) Upon its own motion to order an investigation of any
occupancy of, or evidenced intention to occupy, for the purpose
of developing electric power, public lands, reservations, or
streams or other bodies of water over which Congress has
jurisdiction under its authority to regulate commerce with
foreign nations and among the several States by any person,
corporation, state or municipality and to issue such order as
it may find appropriate, expedient, and in the public interest
to conserve and utilize the navigation and water-power
resources of the region.
* * * * * * *
Sec. 10. All licenses issued under this Part shall be on the
following conditions:
(a)(1) That the project adopted, including the maps, plans,
and specifications, shall be such as in the judgment of the
Commission will be best adapted to a comprehensive plan for
improving or developing a waterway or waterways for the use or
benefit of interstate or foreign commerce, for the improvement
and utilization of waterpower development, for the adequate
protection, mitigation, and enhancement of fish and wildlife
(including related spawning grounds and habitat), and for other
beneficial public uses, including irrigation, flood control,
water supply, and recreational and other purposes referred to
in section 4(e), including minimizing infringement on the
useful exercise and enjoyment of property rights held by
nonlicensees; and if necessary in order to secure such plan the
Commission shall have authority to require the modification of
any project and of the plans and specifications of the project
works before approval.
(2) In order to ensure that the project adopted will be best
adapted to the comprehensive plan described in paragraph (1),
the Commission shall consider each of the following:
(A) The extent to which the project is consistent
with a comprehensive plan (where one exists) for
improving, developing, or conserving a waterway or
waterways affected by the project that is prepared by--
(i) an agency established pursuant to Federal
law that has the authority to prepare such a
plan; or
(ii) the State in which the facility is or
will be located.
(B) The recommendations of Federal and State agencies
exercising administration over flood control,
navigation, irrigation, recreation, cultural and other
relevant resources of the State in which the project is
located, and the recommendations (including fish and
wildlife recommendations) of Indian tribes affected by
the project.
(C) In the case of a State or municipal applicant, or
an applicant which is primarily engaged in the
generation or sale of electric power (other than
electric power solely from cogeneration facilities or
small power production facilities), the electricity
consumption efficiency improvement program of the
applicant, including its plans, performance and
capabilities for encouraging or assisting its customers
to conserve electricity cost-effectively, taking into
account the published policies, restrictions, and
requirements of relevant State regulatory authorities
applicable to such applicant.
(3) Upon receipt of an application for a license, the
Commission shall solicit recommendations from the agencies and
Indian tribes identified in subparagraphs (A) and (B) of
paragraph (2) for proposed terms and conditions for the
Commission's consideration for inclusion in the license.
(b) That except when emergency shall require for the
protection of navigation, life, health, or property, no
substantial alteration or addition not in conformity with the
approved plans shall be made to any dam or other project works
constructed hereunder of an installed capacity in excess of two
thousand horsepower without the prior approval of the
Commission; and any emergency alteration or addition so made
shall thereafter be subject to such modification and change as
the Commission may direct.
(c) That the licensee shall maintain the project works in a
condition or repair adequate for the purposes of navigation and
for the efficient operation of said works in the development
and transmission of power, shall make all necessary renewals
and replacements, shall establish and maintain adequate
depreciation reserves for such purposes, shall so maintain and
operate said works as not to impair navigation, and shall
conform to such rules and regulations as the Commission may
from time to time prescribe for the protection of life, health,
and property. Each licensee hereunder shall be liable for all
damages occasioned to the property of others by the
construction, maintenance, or operation of the project works or
of the works appurtenant or accessory thereto, constructed
under the license, and in no event shall the United States be
liable therefor.
(d) That after the first twenty years of operation, out of
surplus earned thereafter, if any, accumulated in excess of a
specified reasonable rate of return upon the net investment of
a licensee in any project or projects, under license, the
licensee shall establish and maintain amortization reserves,
which reserves shall, in the discretion of the Commission, be
held until the termination of the license or be applied from
time to time in reduction of the net investment. Such specified
rate of return and the proportion of such surplus earnings to
be paid into and held in such reserves shall be set forth in
the license. For any new license issued under section 15, the
amortization reserves under this subsection shall be maintained
on and after the effective date of such new license.
(e)(1) That the licensee shall pay to the United States
reasonable annual charges in an amount to be fixed by the
Commission for the purpose of reimbursing the United States for
the costs of the administration of this Part, including any
reasonable and necessary costs incurred by Federal and State
fish and wildlife agencies and other natural and cultural
resource agencies in connection with studies or other reviews
carried out by such agencies for purposes of administering
their responsibilities under this part; for recompensing it for
the use, occupancy, and enjoyment of its lands or other
property; and for the expropriation to the Government of
excessive profits until the respective States shall make
provision for preventing excessive profits or for the
expropriation thereof to themselves, or until the period of
amortization as herein provided is reached, and in fixing such
charges the Commission shall seek to avoid increasing the price
to the consumers of power by such charges, and any such charges
may be adjusted from time to time by the Commission as
conditions may require: Provided, That, subject to annual
appropriations Acts, the portion of such annual charges imposed
by the Commission under this subsection to cover the reasonable
and necessary costs of such agencies shall be available to such
agencies (in addition to other funds appropriated for such
purposes) solely for carrying out such studies and reviews and
shall remain available until expended: Provided, That when
licenses are issued involving the use of Government dams or
other structures owned by the United States or tribal lands
embraced within Indian reservations the Commission shall,
subject to the approval of the Secretary of the Interior in the
case of such dams or structures in reclamation projects and, in
the case of such tribal lands, subject to the approval of the
Indian tribe having jurisdiction of such lands as provided in
section 16 of the Act of June 18, 1934 (48 Stat. 984), fix a
reasonable annual charge for the use thereof, and such charges
may with like approval be readjusted by the Commission at the
end of twenty years after the project is available for service
and at periods of not less than ten years thereafter upon
notice and opportunity for hearing: Provided further, That
licenses for the development, transmission, or distribution of
power by States or municipalities shall be issued and enjoyed
without charge to the extent such power is sold to the public
without profit or is used by such State or municipality for
State or municipal purposes, except that as to projects
constructed or to be constructed by States or municipalities
primarily designed to provide or improve navigation, licenses
therefor shall be issued without charge; and that licenses for
the development, transmission, or distribution of power for
domestic, mining, or other beneficial use in projects of not
more than two thousand horsepower installed capacity may be
issued without charges, except on tribal lands within Indian
reservations; but in no case shall a license be issued free of
charge for the development and utilization of power created by
any Government dam and that the amount charged therefor in any
license shall be such as determined by the Commission :
Provided however, That no charge shall be assessed for the use
of any Government dam or structure by any licensee if, before
January 1, 1985, the Secretary of the Interior has entered into
a contract with such licensee that meets each of the following
requirements:
(A) The contract covers one or more projects for
which a license was issued by the Commission before
January 1, 1985.
(B) The contract contains provisions specifically
providing each of the following:
(i) A powerplant may be built by the licensee
utilizing irrigation facilities constructed by
the United States.
(ii) The powerplant shall remain in the
exclusive control, possession, and ownership of
the licensee concerned.
(iii) All revenue from the powerplant and
from the use, sale, or disposal of electric
energy from the powerplant shall be, and
remain, the property of such licensee.
(C) The contract is an amendatory, supplemental and
replacement contract between the United States and: (i)
the Quincy-Columbia Basin Irrigation District (Contract
No. 14-06-100-6418); (ii) the East Columbia Basin
Irrigation District (Contract No. 14-06-100-6419); or,
(iii) the South Columbia Basin Irrigation District
(Contract No. 14-06-100-6420).
This paragraph shall apply to any project covered by a contract
referred to in this paragraph only during the term of such
contract unless otherwise provided by subsequent Act of
Congress. In the event an overpayment of any charge due under
this section shall be made by a licensee, the Commission is
authorized to allow a credit for such overpayment when charges
are due for any subsequent period.
(2) In the case of licenses involving the use of Government
dams or other structures owned by the United States, the
charges fixed (or readjusted) by the Commission under paragraph
(1) for the use of such dams or structures shall not exceed 1
mill per kilowatt-hour for the first 40 gigawatt-hours of
energy a project produces in any year, 1\1/2\ mills per
kilowatt-hour for over 40 up to and including 80 gigawatt-hours
in any year, and 2 mills per kilowatt-hour for any energy the
project produces over 80 gigawatt-hours in any year. Except as
provided in subsection (f), such charge shall be the only
charge assessed by any agency of the United States for the use
of such dams or structures.
(3) The provisions of paragraph (2) shall apply with respect
to--
(A) all licenses issued after the date of the
enactment of this paragraph; and
(B) all licenses issued before such date which--
(i) did not fix a specific charge for the use
of the Government dam or structure involved;
and
(ii) did not specify that no charge would be
fixed for the use of such dam or structure.
(4) Every 5 years, the Commission shall review the
appropriateness of the annual charge limitations provided for
in this subsection and report to Congress concerning its
recommendations thereon.
(f) That whenever any licensee hereunder is directly
benefited by the construction work of another licensee, a
permittee, or of the United States of a storage reservoir or
other headwater improvement, the Commission shall require as a
condition of the license that the licensee so benefited shall
reimburse the owner of such reservoir or other improvements for
such part of the annual charges for interest, maintenance, and
depreciation thereon as the Commission may deem equitable. The
proportion of such charges to be paid by any licensee shall be
determined by the Commission. The licensees or permittees
affected shall pay to the United States the cost of making such
determination as fixed by the Commission.
Whenever such reservoir or other improvement is constructed
by the United States the Commission shall assess similar
charges against any licensee directly benefited thereby, and
any amount so assessed shall be paid into the Treasury of the
United States, to be reserved and appropriated as a part of the
special fund for headwater improvements as provided in section
17 hereof.
Whenever any power project not under license is benefited by
the construction work of a licensee or permittee, the United
States or any agency thereof, the Commission, after notice to
the owner or owners of such unlicensed project, shall determine
and fix a reasonable and equitable annual charge to be paid to
the licensee or permittee on account of such benefits, or to
the United States if it be the owner of such headwater
improvement.
(g) Such other conditions not inconsistent with the
provisions of this Act as the Commission may require.
(h)(1) That combinations, agreements, arrangements, or
understandings, express or implied, to limit the output of
electrical energy, to restrain trade, or to fix, maintain, or
increase prices for electrical energy or service are hereby
prohibited.
(2) That conduct under the license that: (A) results in the
contravention of the policies expressed in the antitrust laws;
and (B) is not otherwise justified by the public interest
considering regulatory policies expressed in other applicable
law (including but not limited to those contained in Part II of
this Act) shall be prevented or adequately minimized by means
of conditions included in the license prior to its issuance. In
the event it is impossible to prevent or adequately minimize
the contravention, the Commission shall refuse to issue any
license to the applicant for the project and, in the case of an
existing project, shall take appropriate action to provide
thereafter for the operation and maintenance of the affected
project and for the issuing of a new license in accordance with
section 15 of this Part.
(i) In issuing licenses for a minor part only of a complete
project, or for a complete project of not more than two
thousand horsepower installed capacity, the Commission may in
its discretion waive such conditions, provisions, and
requirements of this Part, except the license period of fifty
years, as it may deem to be to the public interest to waive
under the circumstances: Provided, That the provision hereof
shall not apply annual charges for use of lands within Indian
reservations.
(j)(1) That in order to adequately and equitably protect,
mitigate damages to, and enhance, fish and wildlife (including
related spawning grounds and habitat) affected by the
development, operation, and management of the project, each
license issued under this Part shall include conditions for
such protection, mitigation, and enhancement. Subject to
paragraph (2), such conditions shall be based on
recommendations received pursuant to the Fish and Wildlife
Coordination Act (16 U.S.C. 661 et seq.) from the National
Marine Fisheries Service, the United States Fish and Wildlife
Service, and State fish and wildlife agencies.
(2) Whenever the Commission believes that any recommendation
referred to in paragraph (1) may be inconsistent with the
purposes and requirements of this Part or other applicable law,
the Commission and the agencies referred to in paragraph (1)
shall attempt to resolve any such inconsistency, giving due
weight to the recommendations, expertise, and statutory
responsibilities of such agencies. If, after such attempt, the
Commission does not adopt in whole or in part a recommendation
of any such agency, the Commission shall publish each of the
following findings (together with a statement of the basis for
each of the findings):
(A) A finding that adoption of such recommendation is
inconsistent with the purposes and requirements of this
Part or with other applicable provisions of law.
(B) A finding that the conditions selected by the
Commission comply with the requirements of paragraph
(1).
Subsection (i) shall not apply to the conditions required under
this subsection.
(k) Private Landownership.--In developing any recreational
resource within the project boundary, the licensee shall
consider private landownership as a means to encourage and
facilitate--
(1) private investment; and
(2) increased tourism and recreational use.
* * * * * * *
SEC. 34. HYDROPOWER LICENSING AND PROCESS IMPROVEMENTS.
(a) Definition.--In this section, the term ``Federal
authorization''--
(1) means any authorization required under Federal
law with respect to an application for a license,
license amendment, or exemption under this part; and
(2) includes any permits, special use authorizations,
certifications, opinions, or other approvals as may be
required under Federal law to approve or implement the
license, license amendment, or exemption under this
part.
(b) Designation as Lead Agency.--
(1) In general.--The Commission shall act as the lead
agency for the purposes of coordinating all applicable
Federal authorizations and for the purposes of
complying with the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
(2) Other agencies and indian tribes.--
(A) In general.--Each Federal, State, and
local government agency and Indian tribe
considering an aspect of an application for
Federal authorization shall coordinate with the
Commission and comply with the deadline
established in the schedule developed for the
project in accordance with the rule issued by
the Commission under subsection (c).
(B) Identification.--The Commission shall
identify, as early as practicable after it is
notified by the applicant of a project or
facility requiring Commission action under this
part, any Federal or State agency, local
government, or Indian tribe that may consider
an aspect of an application for a Federal
authorization.
(C) Notification.--
(i) In general.--The Commission shall
notify any agency and Indian tribe
identified under subparagraph (B) of
the opportunity to participate in the
process of reviewing an aspect of an
application for a Federal
authorization.
(ii) Deadline.--Each agency and
Indian tribe receiving a notice under
clause (i) shall submit a response
acknowledging receipt of the notice to
the Commission within 30 days of
receipt of such notice and request.
(D) Issue identification and resolution.--
(i) Identification of issues.--
Federal, State, and local government
agencies and Indian tribes that may
consider an aspect of an application
for Federal authorization shall
identify, as early as possible, and
share with the Commission and the
applicant, any issues of concern
identified during the pendency of the
Commission's action under this part
relating to any Federal authorization
that may delay or prevent the granting
of such authorization, including any
issues that may prevent the agency or
Indian tribe from meeting the schedule
established for the project in
accordance with the rule issued by the
Commission under subsection (c).
(ii) Issue resolution.--The
Commission may forward any issue of
concern identified under clause (i) to
the heads of the relevant State and
Federal agencies (including, in the
case of scheduling concerns identified
by a State or local government agency
or Indian tribe, the Federal agency
overseeing the delegated authority, or
the Secretary of the Interior with
regard to scheduling concerns
identified by an Indian tribe) for
resolution. The Commission and any
relevant agency shall enter into a
memorandum of understanding to
facilitate interagency coordination and
resolution of such issues of concern,
as appropriate.
(c) Schedule.--
(1) Commission rulemaking to establish process to set
schedule.--Within 180 days of the date of enactment of
this section the Commission shall, in consultation with
the appropriate Federal agencies, issue a rule, after
providing for notice and public comment, establishing a
process for setting a schedule following the filing of
an application under this part for the review and
disposition of each Federal authorization.
(2) Elements of scheduling rule.--In issuing a rule
under this subsection, the Commission shall ensure that
the schedule for each Federal authorization--
(A) includes deadlines for actions by--
(i) any Federal or State agency,
local government, or Indian tribe that
may consider an aspect of an
application for the Federal
authorization;
(ii) the applicant;
(iii) the Commission; and
(iv) other participants in a
proceeding;
(B) is developed in consultation with the
applicant and any agency and Indian tribe that
submits a response under subsection
(b)(2)(C)(ii);
(C) provides an opportunity for any Federal
or State agency, local government, or Indian
tribe that may consider an aspect of an
application for the applicable Federal
authorization to identify and resolve issues of
concern, as provided in subsection (b)(2)(D);
(D) complies with applicable schedules
established under Federal and State law;
(E) ensures expeditious completion of all
proceedings required under Federal and State
law, to the extent practicable; and
(F) facilitates completion of Federal and
State agency studies, reviews, and any other
procedures required prior to, or concurrent
with, the preparation of the Commission's
environmental document required under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(d) Transmission of Final Schedule.--
(1) In general.--For each application for a license,
license amendment, or exemption under this part, the
Commission shall establish a schedule in accordance
with the rule issued by the Commission under subsection
(c). The Commission shall publicly notice and transmit
the final schedule to the applicant and each agency and
Indian tribe identified under subsection (b)(2)(B).
(2) Response.--Each agency and Indian tribe receiving
a schedule under this subsection shall acknowledge
receipt of such schedule in writing to the Commission
within 30 days.
(e) Adherence to Schedule.--All applicants, other licensing
participants, and agencies and tribes considering an aspect of
an application for a Federal authorization shall meet the
deadlines set forth in the schedule established pursuant to
subsection (d)(1).
(f) Application Processing.--The Commission, Federal, State,
and local government agencies, and Indian tribes may allow an
applicant seeking a Federal authorization to fund a third-party
contractor selected by such agency or tribe to assist in
reviewing the application. All costs of an agency or tribe
incurred pursuant to direct funding by the applicant, including
all costs associated with the third party contractor, shall not
be considered costs of the United States for the administration
of this part under section 10(e).
(g) Commission Recommendation on Scope of Environmental
Review.--For the purposes of coordinating Federal
authorizations for each project, the Commission shall consult
with and make a recommendation to agencies and Indian tribes
receiving a schedule under subsection (d) on the scope of the
environmental review for all Federal authorizations for such
project. Each Federal and State agency and Indian tribe shall
give due consideration and may give deference to the
Commission's recommendations, to the extent appropriate under
Federal law.
(h) Failure To Meet Schedule.--A Federal, State, or local
government agency or Indian tribe that anticipates that it will
be unable to complete its disposition of a Federal
authorization by the deadline set forth in the schedule
established under subsection (d)(1) may file for an extension
as provided under section 313(b)(2).
(i) Consolidated Record.--The Commission shall, with the
cooperation of Federal, State, and local government agencies
and Indian tribes, maintain a complete consolidated record of
all decisions made or actions taken by the Commission or by a
Federal administrative agency or officer (or State or local
government agency or officer or Indian tribe acting under
delegated Federal authority) with respect to any Federal
authorization. Such record shall constitute the record for
judicial review under section 313(b).
SEC. 35. LICENSING STUDY IMPROVEMENTS.
(a) In General.--To facilitate the timely and efficient
completion of the license proceedings under this part, the
Commission shall, in consultation with applicable Federal and
State agencies and interested members of the public--
(1) compile current and accepted best practices in
performing studies required in such license
proceedings, including methodologies and the design of
studies to assess the full range of environmental
impacts of a project that reflect the most recent peer-
reviewed science;
(2) compile a comprehensive collection of studies and
data accessible to the public that could be used to
inform license proceedings under this part; and
(3) encourage license applicants, agencies, and
Indian tribes to develop and use, for the purpose of
fostering timely and efficient consideration of license
applications, a limited number of open-source
methodologies and tools applicable across a wide array
of projects, including water balance models and
streamflow analyses.
(b) Use of Studies.--To the extent practicable, the
Commission and other Federal, State, and local government
agencies and Indian tribes considering an aspect of an
application for Federal authorization shall use current,
accepted science toward studies and data in support of their
actions. Any participant in a proceeding with respect to a
Federal authorization shall demonstrate a study requested by
the party is not duplicative of current, existing studies that
are applicable to the project.
(c) Basin-Wide or Regional Review.--The Commission shall
establish a program to develop comprehensive plans, at the
request of project applicants, on a regional or basin-wide
scale, in consultation with the applicants, appropriate Federal
agencies, and affected States, local governments, and Indian
tribes, in basins or regions with respect to which there are
more than one project or application for a project. Upon such a
request, the Commission, in consultation with the applicants,
such Federal agencies, and affected States, local governments,
and Indian tribes, may conduct or commission regional or basin-
wide environmental studies, with the participation of at least
2 applicants. Any study conducted under this subsection shall
apply only to a project with respect to which the applicant
participates.
SEC. 36. CLOSED-LOOP PUMPED STORAGE PROJECTS.
(a) Definition.--For purposes of this section, a closed-loop
pumped storage project is a project--
(1) in which the upper and lower reservoirs do not
impound or directly withdraw water from navigable
waters; or
(2) that is not continuously connected to a naturally
flowing water feature.
(b) In General.--As provided in this section, the Commission
may issue and amend licenses and preliminary permits, as
appropriate, for closed-loop pumped storage projects.
(c) Dam Safety.--Before issuing any license for a closed-loop
pumped storage project, the Commission shall assess the safety
of existing dams and other structures related to the project
(including possible consequences associated with failure of
such structures).
(d) License Conditions.--With respect to a closed-loop pumped
storage project, the authority of the Commission to impose
conditions on a license under sections 4(e), 10(a), 10(g), and
10(j) shall not apply, and any condition included in or
applicable to a closed-loop pumped storage project licensed
under this section, including any condition or other
requirement of a Federal authorization, shall be limited to
those that are--
(1) necessary to protect public safety; or
(2) reasonable, economically feasible, and essential
to prevent loss of or damage to, or to mitigate adverse
effects on, fish and wildlife resources directly caused
by the construction and operation of the project, as
compared to the environmental baseline existing at the
time the Commission completes its environmental review.
(e) Transfers.--Notwithstanding section 5, and regardless of
whether the holder of a preliminary permit for a closed-loop
pumped storage project claimed municipal preference under
section 7(a) when obtaining the permit, the Commission may, to
facilitate development of a closed-loop pumped storage
project--
(1) add entities as joint permittees following
issuance of a preliminary permit; and
(2) transfer a license in part to one or more
nonmunicipal entities as co-licensees with a
municipality.
SEC. 37. LICENSE AMENDMENT IMPROVEMENTS.
(a) Qualifying Project Upgrades.--
(1) In general.--As provided in this section, the
Commission may approve an application for an amendment
to a license issued under this part for a qualifying
project upgrade.
(2) Application.--A licensee filing an application
for an amendment to a project license under this
section shall include in such application information
sufficient to demonstrate that the proposed change to
the project described in the application is a
qualifying project upgrade.
(3) Initial determination.--Not later than 15 days
after receipt of an application under paragraph (2),
the Commission shall make an initial determination as
to whether the proposed change to the project described
in the application for a license amendment is a
qualifying project upgrade. The Commission shall
publish its initial determination and issue notice of
the application filed under paragraph (2). Such notice
shall solicit public comment on the initial
determination within 45 days.
(4) Public comment on qualifying criteria.--The
Commission shall accept public comment regarding
whether a proposed license amendment is for a
qualifying project upgrade for a period of 45 days
beginning on the date of publication of a public notice
described in paragraph (3), and shall--
(A) if no entity contests whether the
proposed license amendment is for a qualifying
project upgrade during such comment period,
immediately publish a notice stating that the
initial determination has not been contested;
or
(B) if an entity contests whether the
proposed license amendment is for a qualifying
project upgrade during the comment period,
issue a written determination in accordance
with paragraph (5).
(5) Written determination.--If an entity contests
whether the proposed license amendment is for a
qualifying project upgrade during the comment period
under paragraph (4), the Commission shall, not later
than 30 days after the date of publication of the
public notice of the initial determination under
paragraph (3), issue a written determination as to
whether the proposed license amendment is for a
qualifying project upgrade.
(6) Public comment on amendment application.--If no
entity contests whether the proposed license amendment
is for a qualifying project upgrade during the comment
period under paragraph (4) or the Commission issues a
written determination under paragraph (5) that a
proposed license amendment is a qualifying project
upgrade, the Commission shall--
(A) during the 60-day period beginning on the
date of publication of a notice under paragraph
(4)(A) or the date on which the Commission
issues the written determination under
paragraph (5), as applicable, solicit comments
from each Federal, State, and local government
agency and Indian tribe considering an aspect
of an application for Federal authorization (as
defined in section 34) with respect to the
proposed license amendment, as well as other
interested agencies, Indian tribes, and members
of the public; and
(B) during the 90-day period beginning on the
date of publication of a notice under paragraph
(4)(A) or the date on which the Commission
issues the written determination under
paragraph (5), as applicable, consult with--
(i) appropriate Federal agencies and
the State agency exercising
administrative control over the fish
and wildlife resources, and water
quality and supply, of the State in
which the qualifying project upgrade is
located;
(ii) any Federal department
supervising any public lands or
reservations occupied by the qualifying
project upgrade; and
(iii) any Indian tribe affected by
the qualifying project upgrade.
(7) Federal authorizations.--The schedule established
by the Commission under section 34 for any project
upgrade under this subsection shall require final
disposition on all necessary Federal authorizations (as
defined in section 34), other than final action by the
Commission, by not later than 120 days after the date
on which the Commission issues a notice under paragraph
(4)(A) or a written determination under paragraph (5),
as applicable.
(8) Commission action.--Not later than 150 days after
the date on which the Commission issues a notice under
paragraph (4)(A) or a written determination under
paragraph (5), as applicable, the Commission shall take
final action on the license amendment application.
(9) License amendment conditions.--Any condition
included in or applicable to a license amendment
approved under this subsection, including any condition
or other requirement of a Federal authorization, shall
be limited to those that are--
(A) necessary to protect public safety; or
(B) reasonable, economically feasible, and
essential to prevent loss of or damage to, or
to mitigate adverse effects on, fish and
wildlife resources, water supply, and water
quality that are directly caused by the
construction and operation of the qualifying
project upgrade, as compared to the
environmental baseline existing at the time the
Commission approves the application for the
license amendment.
(10) Proposed license amendments that are not
qualifying project upgrades.--If the Commission
determines under paragraph (3) or (5) that a proposed
license amendment is not for a qualifying project
upgrade, the procedures under paragraphs (6) through
(9) shall not apply to the application.
(11) Rulemaking.--Not later than 180 days after the
date of enactment of this section, the Commission
shall, after notice and opportunity for public comment,
issue a rule to implement this subsection.
(12) Definitions.--For purposes of this subsection:
(A) Qualifying project upgrade.--The term
``qualifying project upgrade'' means a change
to a project licensed under this part that
meets the qualifying criteria, as determined by
the Commission.
(B) Qualifying criteria.--The term
``qualifying criteria'' means, with respect to
a project license under this part, a change to
the project that--
(i) if carried out, would be unlikely
to adversely affect any species listed
as threatened or endangered under the
Endangered Species Act of 1973 or
result in the destruction or adverse
modification of critical habitat, as
determined in consultation with the
Secretary of the Interior or Secretary
of Commerce, as appropriate, in
accordance with section 7 of the
Endangered Species Act of 1973;
(ii) is consistent with any
applicable comprehensive plan under
section 10(a)(2);
(iii) includes only changes to
project lands, waters, or operations
that, in the judgment of the
Commission, would result in only
insignificant or minimal cumulative
adverse environmental effects;
(iv) would be unlikely to adversely
affect water quality and water supply;
and
(v) proposes to implement--
(I) capacity increases,
efficiency improvements, or
other enhancements to
hydropower generation at the
licensed project;
(II) environmental
protection, mitigation, or
enhancement measures to benefit
fish and wildlife resources or
other natural and cultural
resources; or
(III) improvements to public
recreation at the licensed
project.
(b) Amendment Approval Processes.--
(1) Rule.--Not later than 1 year after the date of
enactment of this section, the Commission shall, after
notice and opportunity for public comment, issue a rule
establishing new standards and procedures for license
amendment applications under this part. In issuing such
rule, the Commission shall seek to develop the most
efficient and expedient process, consultation, and
review requirements, commensurate with the scope of
different categories of proposed license amendments.
Such rule shall account for differences in
environmental effects across a wide range of categories
of license amendment applications.
(2) Capacity.--In issuing a rule under this
subsection, the Commission shall take into
consideration that a change in generating or hydraulic
capacity may indicate the potential environmental
effects of a proposed amendment but is not
determinative of such effects.
(3) Process options.--In issuing a rule under this
subsection, the Commission shall take into
consideration the range of process options available
under the Commission's regulations for new and original
license applications and adapt such options to
amendment applications, where appropriate.
SEC. 38. PROMOTING HYDROPOWER DEVELOPMENT AT EXISTING NONPOWERED DAMS.
(a) Exemptions for Qualifying Facilities.--
(1) Exemption qualifications.--Subject to the
requirements of this subsection, the Commission may
grant an exemption in whole or in part from the
requirements of this part, including any license
requirements contained in this part, to any facility
the Commission determines is a qualifying facility.
(2) Consultation with federal and state agencies.--In
granting any exemption under this subsection, the
Commission shall consult with--
(A) the United States Fish and Wildlife
Service, the National Marine Fisheries Service,
and the State agency exercising administrative
control over the fish and wildlife resources of
the State in which the facility will be
located, in the manner provided by the Fish and
Wildlife Coordination Act;
(B) any Federal department supervising any
public lands or reservations occupied by the
project; and
(C) any Indian tribe affected by the project.
(3) Exemption conditions.--
(A) In general.--The Commission shall include
in any exemption granted under this subsection
only such terms and conditions that the
Commission determines are--
(i) necessary to protect public
safety; or
(ii) reasonable, economically
feasible, and essential to prevent loss
of or damage to, or to mitigate adverse
effects on, fish and wildlife resources
directly caused by the construction and
operation of the qualifying facility,
as compared to the environmental
baseline existing at the time the
Commission grants the exemption.
(B) No changes to release regime.--No Federal
authorization required with respect to a
qualifying facility described in paragraph (1),
including an exemption granted by the
Commission under this subsection, may include
any condition or other requirement that results
in any material change to the storage, control,
withdrawal, diversion, release, or flow
operations of the associated qualifying
nonpowered dam.
(4) Environmental review.--The Commission's
environmental review under the National Environmental
Policy Act of 1969 of a proposed exemption under this
subsection shall consist only of an environmental
assessment, unless the Commission determines, by rule
or order, that the Commission's obligations under such
Act for granting exemptions under this subsection can
be met through a categorical exclusion.
(5) Violation of terms of exemption.--Any violation
of a term or condition of any exemption granted under
this subsection shall be treated as a violation of a
rule or order of the Commission under this Act.
(6) Annual charges for enhancement activities.--
Exemptees under this subsection for any facility
located at a non-Federal dam shall pay to the United
States reasonable annual charges in an amount to be
fixed by the Commission for the purpose of funding
environmental enhancement projects in watersheds in
which facilities exempted under this subsection are
located. Such annual charges shall be equivalent to the
annual charges for use of a Government dam under
section 10(e), unless the Commission determines, by
rule, that a lower charge is appropriate to protect
exemptees' investment in the project or avoid
increasing the price to consumers of power due to such
charges. The proceeds of charges made by the Commission
under this paragraph shall be paid into the Treasury of
the United States and credited to miscellaneous
receipts. Subject to annual appropriation Acts, such
proceeds shall be available to Federal and State fish
and wildlife agencies for purposes of carrying out
specific environmental enhancement projects in
watersheds in which one or more facilities exempted
under this subsection are located. Not later than 180
days after the date of enactment of this section, the
Commission shall establish rules, after notice and
opportunity for public comment, for the collection and
administration of annual charges under this paragraph.
(7) Effect of jurisdiction.--The jurisdiction of the
Commission over any qualifying facility exempted under
this subsection shall extend only to the qualifying
facility exempted and any associated primary
transmission line, and shall not extend to any conduit,
dam, impoundment, shoreline or other land, or any other
project work associated with the qualifying facility
exempted under this subsection.
(b) Definitions.--For purposes of this section--
(1) Federal authorization.--The term ``Federal
authorization'' has the same meaning as provided in
section 34.
(2) Qualifying criteria.--The term ``qualifying
criteria'' means, with respect to a facility--
(A) as of the date of enactment of this
section, the facility is not licensed under, or
exempted from the license requirements
contained in, this part;
(B) the facility will be associated with a
qualifying nonpowered dam;
(C) the facility will be constructed,
operated, and maintained for the generation of
electric power;
(D) the facility will use for such generation
any withdrawals, diversions, releases, or flows
from the associated qualifying nonpowered dam,
including its associated impoundment or other
infrastructure; and
(E) the operation of the facility will not
result in any material change to the storage,
control, withdrawal, diversion, release, or
flow operations of the associated qualifying
nonpowered dam.
(3) Qualifying facility.--The term ``qualifying
facility'' means a facility that is determined under
this section to meet the qualifying criteria.
(4) Qualifying nonpowered dam.--The term ``qualifying
nonpowered dam'' means any dam, dike, embankment, or
other barrier--
(A) the construction of which was completed
on or before the date of enactment of this
section;
(B) that is operated for the control,
release, or distribution of water for
agricultural, municipal, navigational,
industrial, commercial, environmental,
recreational, aesthetic, or flood control
purposes;
(C) that, as of the date of enactment of this
section, is not equipped with hydropower
generating works that are licensed under, or
exempted from the license requirements
contained in, this part; and
(D) that, in the case of a non-Federal dam,
has been certified by an independent consultant
approved by the Commission as complying with
the Commission's dam safety requirements.
PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE
COMMERCE
declaration of policy; application of part; definitions
Section 201. (a) It is hereby declared that the business of
transmitting and selling electric energy for ultimate
distribution to the public is affected with a public interest,
and that Federal regulation of matters relating to generation
to the extent provided in this Part and the Part next following
and of that part of such business which consists of the
transmission of electric energy in interstate commerce and the
sale of such energy at wholesale in interstate commerce is
necessary in the public interest, such Federal regulation,
however, to extend only to those matters which are not subject
to regulation by the States.
(b)(1) The provisions of this Part shall apply to the
transmission of electric energy in interstate commerce and to
the sale of electric energy at wholesale in interstate
commerce, but except as provided in paragraph (2) shall not
apply to any other sale of electric energy or deprive a State
or State commission of its lawful authority now exercised over
the exportation of hydroelectric energy which is transmitted
across a State line. The Commission shall have jurisdiction
over all facilities for such transmission or sale of electric
energy, but shall not have jurisdiction, except as specifically
provided in this Part and the Part next following, over
facilities used for the generation of electric energy or over
facilities used in local distribution or only for the
transmission of electric energy in intrastate commerce, or over
facilities for the transmission of electric energy consumed
wholly by the transmitter.
(2) Notwithstanding section 201(f), the provisions of
sections 203(a)(2), 206(e), 210, 211, 211A, 212, 215, 215A,
216, 217, 218, 219, 220, 221, and 222 shall apply to the
entities described in such provisions, and such entities shall
be subject to the jurisdiction of the Commission for purposes
of carrying out such provisions and for purposes of applying
the enforcement authorities of this Act with respect to such
provisions. Compliance with any order of the Commission under
the provisions of section 203(a)(2), 206(e), 210, 211, 211A,
212, 215, 215A, 216, 217, 218, 219, 220, 221, or 222, shall not
make an electric utility or other entity subject to the
jurisdiction of the Commission for any purposes other than the
purposes specified in the preceding sentence.
(c) For the purpose of this Part, electric energy shall be
held to be transmitted in interstate commerce if transmitted
from a State and consumed at any point outside thereof: but
only insofar as such transmission takes place within the United
States.
(d) The term ``sale of electric energy at wholesale'' when
used in this Part means a sale of electric energy to any person
for resale.
(e) The term ``public utility'' when used in this Part or in
the Part next following means any person who owns or operates
facilities subject to the jurisdiction of the Commission under
this Part (other than facilities subject to such jurisdiction
solely by reason of section 206(e), 206(f), 210, 211, 211A,
212, 215, 215A, 216, 217, 218, 219, 220, 221, or 222).
(f) No provision in this Part shall apply to, or be deemed to
include, the United States, a State or any political
subdivision of a State, an electric cooperative that receives
financing under the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.) or that sells less than 4,000,000 megawatt hours
of electricity per year, or any agency, authority, or
instrumentality of any one or more of the foregoing, or any
corporation which is wholly owned, directly or indirectly, by
any one or more of the foregoing, or any officer, agent,
employee of any of the foregoing acting as such in the course
of his official duty, unless such provision makes specific
reference thereto.
(g) Books and Records.--(1) Upon written order of a State
commission, a State commission may examine the books, accounts,
memoranda, contracts, and records of--
(A) an electric utility company subject to its
regulatory authority under State law,
(B) any exempt wholesale generator selling energy at
wholesale to such electric utility, and
(C) any electric utility company, or holding company
thereof, which is an associate company or affiliate of
an exempt wholesale generator which sells electric
energy to an electric utility company referred to in
subparagraph (A),
wherever located, if such examination is required for the
effective discharge of the State commission's regulatory
responsibilities affecting the provision of electric service.
(2) Where a State commission issues an order pursuant to
paragraph (1), the State commission shall not publicly disclose
trade secrets or sensitive commercial information.
(3) Any United States district court located in the State in
which the State commission referred to in paragraph (1) is
located shall have jurisdiction to enforce compliance with this
subsection.
(4) Nothing in this section shall--
(A) preempt applicable State law concerning the
provision of records and other information; or
(B) in any way limit rights to obtain records and
other information under Federal law, contracts, or
otherwise.
(5) As used in this subsection the terms ``affiliate'',
``associate company'', ``electric utility company'', ``holding
company'', ``subsidiary company'', and ``exempt wholesale
generator'' shall have the same meaning as when used in the
Public Utility Holding Company Act of 2005.
interconnection and coordination of facilities; emergencies;
transmission to foreign countries
Sec. 202. (a) For the purpose of assuring an abundant supply
of electric energy throughout the United States with the
greatest possible economy and with regard to the proper
utilization and conservation of natural resources, the
Commission is empowered and directed to divide the country into
regional districts for the voluntary interconnection and
coordination of facilities for the generation, transmission,
and sale of electric energy, and it may at any time thereafter,
upon its own motion or upon application, make such
modifications thereof as in its judgment will promote the
public interest. Each such district shall embrace an area
which, in the judgment of the Commission, can economically be
served by such interconnected and coordinated electric
facilities. It shall be the duty of the Commission to promote
and encourage such interconnection and coordination within each
such district and between such districts. Before establishing
any such district and fixing or modifying the boundaries
thereof the Commission shall give notice to the State
commission of each State situated wholly or in part within such
district, and shall afford each such State commission
reasonable opportunity to present its views and
recommendations, and shall receive and consider such views and
recommendations.
(b) Whenever the Commission, upon application of any State
commission or of any person engaged in the transmission or sale
of electric energy, and after notice to each State commission
and public utility affected and after opportunity for hearing,
finds such action necessary or appropriate in the public
interest it may by order direct a public utility (if the
Commission finds that no undue burden will be placed upon such
public utility thereby) to establish physical connection of its
transmission facilities with the facilities of one or more
other persons engaged in the transmission or sale of electric
energy, to sell energy to or exchange energy with such persons:
Provided, That the Commission shall have no authority to compel
the enlargement of generating facilities for such purposes, nor
to compel such public utility to sell or exchange energy when
to do so would impair its ability to render adequate service to
its customers. The Commission may prescribe the terms and
conditions of the arrangement to be made between the persons
affected by any such order, including the apportionment of cost
between them and the compensation or reimbursement reasonably
due to any of them.
(c) (1) During the continuance of any war in which the United
States is engaged, or whenever the Commission determines that
an emergency exists by reason of a sudden increase in the
demand for electric energy, or a shortage of electric energy or
of facilities for the generation or transmission of electric
energy, or of fuel or water for generating facilities, or other
causes, the Commission shall have authority, either upon its
own motion or upon complaint, with or without notice, hearing,
or report, to require by order such temporary connections of
facilities and such generation, delivery, interchange, or
transmission of electric energy as in its judgment will best
meet the emergency and serve the public interest. If the
parties affected by such order fail to agree upon the terms of
any arrangement between them in carrying out such order, the
Commission, after hearing held either before or after such
order takes effect, may prescribe by supplemental order such
terms as it finds to be just and reasonable, including the
compensation or reimbursement which should be paid to or by any
such party.
(2) With respect to an order issued under this subsection
that may result in a conflict with a requirement of any
Federal, State, or local environmental law or regulation, the
Commission shall ensure that such order requires generation,
delivery, interchange, or transmission of electric energy only
during hours necessary to meet the emergency and serve the
public interest, and, to the maximum extent practicable, is
consistent with any applicable Federal, State, or local
environmental law or regulation and minimizes any adverse
environmental impacts.
(3) To the extent any omission or action taken by a party,
that is necessary to comply with an order issued under this
subsection, including any omission or action taken to
voluntarily comply with such order, results in noncompliance
with, or causes such party to not comply with, any Federal,
State, or local environmental law or regulation, such omission
or action shall not be considered a violation of such
environmental law or regulation, or subject such party to any
requirement, civil or criminal liability, or a citizen suit
under such environmental law or regulation.
(4)(A) An order issued under this subsection that may result
in a conflict with a requirement of any Federal, State, or
local environmental law or regulation shall expire not later
than 90 days after it is issued. The Commission may renew or
reissue such order pursuant to paragraphs (1) and (2) for
subsequent periods, not to exceed 90 days for each period, as
the Commission determines necessary to meet the emergency and
serve the public interest.
(B) In renewing or reissuing an order under subparagraph (A),
the Commission shall consult with the primary Federal agency
with expertise in the environmental interest protected by such
law or regulation, and shall include in any such renewed or
reissued order such conditions as such Federal agency
determines necessary to minimize any adverse environmental
impacts to the extent practicable. The conditions, if any,
submitted by such Federal agency shall be made available to the
public. The Commission may exclude such a condition from the
renewed or reissued order if it determines that such condition
would prevent the order from adequately addressing the
emergency necessitating such order and provides in the order,
or otherwise makes publicly available, an explanation of such
determination.
(5) If an order issued under this subsection is subsequently
stayed, modified, or set aside by a court pursuant to section
313 or any other provision of law, any omission or action
previously taken by a party that was necessary to comply with
the order while the order was in effect, including any omission
or action taken to voluntarily comply with the order, shall
remain subject to paragraph (3).
(d) During the continuance of any emergency requiring
immediate action, any person or municipality engaged in the
transmission or sale of electric energy and not otherwise
subject to the jurisdiction of the Commission may make such
temporary connections with any public utility subject to the
jurisdiction of the Commission or may construct such temporary
facilities for the transmission of electric energy in
interstate commerce as may be necessary or appropriate to meet
such emergency, and shall not become subject to the
jurisdiction of the Commission by reason of such temporary
connection or temporary construction: Provided, That such
temporary connection shall be discontinued or such temporary
construction removed or otherwise disposed of upon the
termination of such emergency: Provided further, That upon
approval of the Commission permanent connections for emergency
use only may be made hereunder.
(e) After six months from the date on which this Part takes
effect, no person shall transmit any electric energy from the
United States to a foreign country without first having secured
an order of the Commission authorizing it to do so. The
Commission shall issue such order upon application unless,
after opportunity for hearing, it finds that the proposed
transmission would impair the sufficiency of electric supply
within the United States or would impede or tend to impede the
coordination in the public interest of facilities subject to
the jurisdiction of the Commission. The Commission may by its
order grant such application in whole or in part, with such
modifications and upon such terms and conditions as the
Commission may find necessary or appropriate, and may from time
to time, after opportunity for hearing and for good cause
shown, make such supplemental orders in the premises as it may
find necessary or appropriate.
(f) The ownership or operation of facilities for the
transmission or sale at wholesale of electric energy which is
(a) generated within a State and transmitted from that State
across an international boundary and not thereafter transmitted
into any other State, or (b) generated in a foreign country and
transmitted across an international boundary into a State and
not thereafter transmitted into any other State, shall not make
a person a public utility subject to regulation as such under
other provisions of this part. The State within which any such
facilities are located may regulate any such transaction
insofar as such State regulation does not conflict with the
exercise of the Commission's powers under or relating to
subsection 202(e).
(g) In order to insure continuity of service to customers of
public utilities, the Commission shall require by rule, each
public utility to--
(1) report promptly to the Commission and any
appropriate State regulatory authorities any
anticipated shortage of electric energy or capacity
which would affect such utility's capability of serving
its wholesale customers,
(2) submit to the Commission, and to any appropriate
State regulatory authority, and periodically revise,
contingency plans respecting--
(A) shortages of electric energy or capacity,
and
(B) circumstances which may result in such
shortages, and
(3) accommodate any such shortages or circumstances
in a manner which shall--
(A) give due consideration to the public
health, safety, and welfare, and
(B) provide that all persons served directly
or indirectly by such public utility will be
treated, without undue prejudice or
disadvantage.
disposition of property; consolidation; purchase of securities
Sec. 203. (a)(1) No public utility shall, without first
having secured an order of the Commission authorizing it to do
so--
(A) sell, lease, or otherwise dispose of the
whole of its facilities subject to the
jurisdiction of the Commission, or any part
thereof of a value in excess of $10,000,000;
(B) merge or consolidate, directly or
indirectly, [such facilities or any part
thereof] such facilities, or any part thereof,
of a value in excess of $10,000,000 with those
of any other person, by any means whatsoever;
(C) purchase, acquire, or take any security
with a value in excess of $10,000,000 of any
other public utility; or
(D) purchase, lease, or otherwise acquire an
existing generation facility--
(i) that has a value in excess of
$10,000,000; and
(ii) that is used for interstate
wholesale sales and over which the
Commission has jurisdiction for
ratemaking purposes.
(2) No holding company in a holding company system
that includes a transmitting utility or an electric
utility shall purchase, acquire, or take any security
with a value in excess of $10,000,000 of, or, by any
means whatsoever, directly or indirectly, merge or
consolidate with, a transmitting utility, an electric
utility company, or a holding company in a holding
company system that includes a transmitting utility, or
an electric utility company, with a value in excess of
$10,000,000 without first having secured an order of
the Commission authorizing it to do so.
(3) Upon receipt of an application for such approval
the Commission shall give reasonable notice in writing
to the Governor and State commission of each of the
States in which the physical property affected, or any
part thereof, is situated, and to such other persons as
it may deem advisable.
(4) After notice and opportunity for hearing, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it
finds that the proposed transaction will be consistent
with the public interest, and will not result in cross-
subsidization of a non-utility associate company or the
pledge or encumbrance of utility assets for the benefit
of an associate company, unless the Commission
determines that the cross-subsidization, pledge, or
encumbrance will be consistent with the public
interest.
(5) The Commission shall, by rule, adopt procedures
for the expeditious consideration of applications for
the approval of dispositions, consolidations, or
acquisitions, under this section. Such rules shall
identify classes of transactions, or specify criteria
for transactions, that normally meet the standards
established in paragraph (4). The Commission shall
provide expedited review for such transactions. The
Commission shall grant or deny any other application
for approval of a transaction not later than 180 days
after the application is filed. If the Commission does
not act within 180 days, such application shall be
deemed granted unless the Commission finds, based on
good cause, that further consideration is required to
determine whether the proposed transaction meets the
standards of paragraph (4) and issues an order tolling
the time for acting on the application for not more
than 180 days, at the end of which additional period
the Commission shall grant or deny the application.
(6) For purposes of this subsection, the terms
``associate company'', ``holding company'', and
``holding company system'' have the meaning given those
terms in the Public Utility Holding Company Act of
2005.
(b) The Commission may grant any application for an order
under this section in whole or in part and upon such terms and
conditions as it finds necessary or appropriate to secure the
maintenance of adequate service and the coordination in the
public interest of facilities subject to the jurisdiction of
the Commission. The Commission may from time to time for good
cause shown make such orders supplemental to any order made
under this section as it may find necessary or appropriate.
* * * * * * *
SEC. 215A. CRITICAL ELECTRIC INFRASTRUCTURE SECURITY.
(a) Definitions.--For purposes of this section:
(1) Bulk-power system; electric reliability
organization; regional entity.--The terms ``bulk-power
system'', ``Electric Reliability Organization'', and
``regional entity'' have the meanings given such terms
in paragraphs (1), (2), and (7) of section 215(a),
respectively.
(2) Critical electric infrastructure.--The term
``critical electric infrastructure'' means a system or
asset of the bulk-power system, whether physical or
virtual, the incapacity or destruction of which would
negatively affect national security, economic security,
public health or safety, or any combination of such
matters.
(3) Critical electric infrastructure information.--
The term ``critical electric infrastructure
information'' means information related to critical
electric infrastructure, or proposed critical
electrical infrastructure, generated by or provided to
the Commission or other Federal agency, other than
classified national security information, that is
designated as critical electric infrastructure
information by the Commission under subsection (d)(2).
Such term includes information that qualifies as
critical energy infrastructure information under the
Commission's regulations.
(4) Defense critical electric infrastructure.--The
term ``defense critical electric infrastructure'' means
any electric infrastructure located in the United
States (including the territories) that serves a
facility designated by the Secretary pursuant to
subsection (c), but is not owned or operated by the
owner or operator of such facility.
(5) Electromagnetic pulse.--The term
``electromagnetic pulse'' means 1 or more pulses of
electromagnetic energy emitted by a device capable of
disabling or disrupting operation of, or destroying,
electronic devices or communications networks,
including hardware, software, and data, by means of
such a pulse.
(6) Geomagnetic storm.--The term ``geomagnetic
storm'' means a temporary disturbance of the Earth's
magnetic field resulting from solar activity.
(7) Grid security emergency.--The term ``grid
security emergency'' means the occurrence or imminent
danger of--
(A)(i) a malicious act using electronic
communication or an electromagnetic pulse, or a
geomagnetic storm event, that could disrupt the
operation of those electronic devices or
communications networks, including hardware,
software, and data, that are essential to the
reliability of critical electric infrastructure
or of defense critical electric infrastructure;
and
(ii) disruption of the operation of such
devices or networks, with significant adverse
effects on the reliability of critical electric
infrastructure or of defense critical electric
infrastructure, as a result of such act or
event; or
(B)(i) a direct physical attack on critical
electric infrastructure or on defense critical
electric infrastructure; and
(ii) significant adverse effects on the
reliability of critical electric infrastructure
or of defense critical electric infrastructure
as a result of such physical attack.
(8) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(b) Authority To Address Grid Security Emergency.--
(1) Authority.--Whenever the President issues and
provides to the Secretary a written directive or
determination identifying a grid security emergency,
the Secretary may, with or without notice, hearing, or
report, issue such orders for emergency measures as are
necessary in the judgment of the Secretary to protect
or restore the reliability of critical electric
infrastructure or of defense critical electric
infrastructure during such emergency. As soon as
practicable but not later than 180 days after the date
of enactment of this section, the Secretary shall,
after notice and opportunity for comment, establish
rules of procedure that ensure that such authority can
be exercised expeditiously.
(2) Notification of congress.--Whenever the President
issues and provides to the Secretary a written
directive or determination under paragraph (1), the
President shall promptly notify congressional
committees of relevant jurisdiction, including the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate, of the contents of, and
justification for, such directive or determination.
(3) Consultation.--Before issuing an order for
emergency measures under paragraph (1), the Secretary
shall, to the extent practicable in light of the nature
of the grid security emergency and the urgency of the
need for action, consult with appropriate governmental
authorities in Canada and Mexico, entities described in
paragraph (4), the Electricity Sub-sector Coordinating
Council, the Commission, and other appropriate Federal
agencies regarding implementation of such emergency
measures.
(4) Application.--An order for emergency measures
under this subsection may apply to--
(A) the Electric Reliability Organization;
(B) a regional entity; or
(C) any owner, user, or operator of critical
electric infrastructure or of defense critical
electric infrastructure within the United
States.
(5) Expiration and reissuance.--
(A) In general.--Except as provided in
subparagraph (B), an order for emergency
measures issued under paragraph (1) shall
expire no later than 15 days after its
issuance.
(B) Extensions.--The Secretary may reissue an
order for emergency measures issued under
paragraph (1) for subsequent periods, not to
exceed 15 days for each such period, provided
that the President, for each such period,
issues and provides to the Secretary a written
directive or determination that the grid
security emergency identified under paragraph
(1) continues to exist or that the emergency
measure continues to be required.
(6) Cost recovery.--
(A) Critical electric infrastructure.--If the
Commission determines that owners, operators,
or users of critical electric infrastructure
have incurred substantial costs to comply with
an order for emergency measures issued under
this subsection and that such costs were
prudently incurred and cannot reasonably be
recovered through regulated rates or market
prices for the electric energy or services sold
by such owners, operators, or users, the
Commission shall, consistent with the
requirements of section 205, after notice and
an opportunity for comment, establish a
mechanism that permits such owners, operators,
or users to recover such costs.
(B) Defense critical electric
infrastructure.--To the extent the owner or
operator of defense critical electric
infrastructure is required to take emergency
measures pursuant to an order issued under this
subsection, the owners or operators of a
critical defense facility or facilities
designated by the Secretary pursuant to
subsection (c) that rely upon such
infrastructure shall bear the full incremental
costs of the measures.
(7) Temporary access to classified information.--The
Secretary, and other appropriate Federal agencies,
shall, to the extent practicable and consistent with
their obligations to protect classified information,
provide temporary access to classified information
related to a grid security emergency for which
emergency measures are issued under paragraph (1) to
key personnel of any entity subject to such emergency
measures to enable optimum communication between the
entity and the Secretary and other appropriate Federal
agencies regarding the grid security emergency.
(c) Designation of Critical Defense Facilities.--Not later
than 180 days after the date of enactment of this section, the
Secretary, in consultation with other appropriate Federal
agencies and appropriate owners, users, or operators of
infrastructure that may be defense critical electric
infrastructure, shall identify and designate facilities located
in the United States (including the territories) that are--
(1) critical to the defense of the United States; and
(2) vulnerable to a disruption of the supply of
electric energy provided to such facility by an
external provider.
The Secretary may, in consultation with appropriate Federal
agencies and appropriate owners, users, or operators of defense
critical electric infrastructure, periodically revise the list
of designated facilities as necessary.
(d) Protection and Sharing of Critical Electric
Infrastructure Information.--
(1) Protection of critical electric infrastructure
information.--Critical electric infrastructure
information--
(A) shall be exempt from disclosure under
section 552(b)(3) of title 5, United States
Code; and
(B) shall not be made available by any
Federal, State, political subdivision or tribal
authority pursuant to any Federal, State,
political subdivision or tribal law requiring
public disclosure of information or records.
(2) Designation and sharing of critical electric
infrastructure information.--Not later than one year
after the date of enactment of this section, the
Commission, in consultation with the Secretary of
Energy, shall promulgate such regulations and issue
such orders as necessary to--
(A) designate information as critical
electric infrastructure information;
(B) prohibit the unauthorized disclosure of
critical electric infrastructure information;
(C) ensure there are appropriate sanctions in
place for Commissioners, officers, employees,
or agents of the Commission who knowingly and
willfully disclose critical electric
infrastructure information in a manner that is
not authorized under this section; and
(D) taking into account standards of the
Electric Reliability Organization, facilitate
voluntary sharing of critical electric
infrastructure information with, between, and
by--
(i) Federal, State, political
subdivision, and tribal authorities;
(ii) the Electric Reliability
Organization;
(iii) regional entities;
(iv) information sharing and analysis
centers established pursuant to
Presidential Decision Directive 63;
(v) owners, operators, and users of
critical electric infrastructure in the
United States; and
(vi) other entities determined
appropriate by the Commission.
(3) Considerations.--In promulgating regulations and
issuing orders under paragraph (2), the Commission
shall take into consideration the role of State
commissions in reviewing the prudence and cost of
investments, determining the rates and terms of
conditions for electric services, and ensuring the
safety and reliability of the bulk-power system and
distribution facilities within their respective
jurisdictions.
(4) Protocols.--The Commission shall, in consultation
with Canadian and Mexican authorities, develop
protocols for the voluntary sharing of critical
electric infrastructure information with Canadian and
Mexican authorities and owners, operators, and users of
the bulk-power system outside the United States.
(5) No required sharing of information.--Nothing in
this section shall require a person or entity in
possession of critical electric infrastructure
information to share such information with Federal,
State, political subdivision, or tribal authorities, or
any other person or entity.
(6) Submission of information to congress.--Nothing
in this section shall permit or authorize the
withholding of information from Congress, any committee
or subcommittee thereof, or the Comptroller General.
(7) Disclosure of nonprotected information.--In
implementing this section, the Commission shall protect
from disclosure only the minimum amount of information
necessary to protect the security and reliability of
the bulk-power system and distribution facilities. The
Commission shall segregate critical electric
infrastructure information within documents and
electronic communications, wherever feasible, to
facilitate disclosure of information that is not
designated as critical electric infrastructure
information.
(8) Duration of designation.--Information may not be
designated as critical electric infrastructure
information for longer than 5 years, unless
specifically re-designated by the Commission.
(9) Removal of designation.--The Commission shall
remove the designation of critical electric
infrastructure information, in whole or in part, from a
document or electronic communication if the Commission
determines that the unauthorized disclosure of such
information could no longer be used to impair the
security or reliability of the bulk-power system or
distribution facilities.
(10) Judicial review of designations.--
Notwithstanding section 313(b), any determination by
the Commission concerning the designation of critical
electric infrastructure information under this
subsection shall be subject to review under chapter 7
of title 5, United States Code, except that such review
shall be brought in the district court of the United
States in the district in which the complainant
resides, or has his principal place of business, or in
the District of Columbia. In such a case the court
shall examine in camera the contents of documents or
electronic communications that are the subject of the
determination under review to determine whether such
documents or any part thereof were improperly
designated or not designated as critical electric
infrastructure information.
(e) Security Clearances.--The Secretary shall facilitate and,
to the extent practicable, expedite the acquisition of adequate
security clearances by key personnel of any entity subject to
the requirements of this section, to enable optimum
communication with Federal agencies regarding threats to the
security of the critical electric infrastructure. The
Secretary, the Commission, and other appropriate Federal
agencies shall, to the extent practicable and consistent with
their obligations to protect classified and critical electric
infrastructure information, share timely actionable information
regarding grid security with appropriate key personnel of
owners, operators, and users of the critical electric
infrastructure.
(f) Clarifications of Liability.--
(1) Compliance with or violation of this act.--Except
as provided in paragraph (4), to the extent any action
or omission taken by an entity that is necessary to
comply with an order for emergency measures issued
under subsection (b)(1), including any action or
omission taken to voluntarily comply with such order,
results in noncompliance with, or causes such entity
not to comply with any rule, order, regulation, or
provision of this Act, including any reliability
standard approved by the Commission pursuant to section
215, such action or omission shall not be considered a
violation of such rule, order, regulation, or
provision.
(2) relation to section 202(c).--Except as provided
in paragraph (4), an action or omission taken by an
owner, operator, or user of critical electric
infrastructure or of defense critical electric
infrastructure to comply with an order for emergency
measures issued under subsection (b)(1) shall be
treated as an action or omission taken to comply with
an order issued under section 202(c) for purposes of
such section.
(3) Sharing or receipt of information.--No cause of
action shall lie or be maintained in any Federal or
State court for the sharing or receipt of information
under, and that is conducted in accordance with,
subsection (d).
(4) Rule of construction.--Nothing in this subsection
shall be construed to require dismissal of a cause of
action against an entity that, in the course of
complying with an order for emergency measures issued
under subsection (b)(1) by taking an action or omission
for which they would be liable but for paragraph (1) or
(2), takes such action or omission in a grossly
negligent manner.
SEC. 215B. RELIABILITY AND PERFORMANCE ASSURANCE IN REGIONAL
TRANSMISSION ORGANIZATIONS.
(a) Existing Capacity Markets.--
(1) Analysis concerning capacity market design.--Not
later than 180 days after the date of enactment of this
section, each Regional Transmission Organization, and
each Independent System Operator, that operates a
capacity market, or a comparable market intended to
ensure the procurement and availability of sufficient
future electric energy resources, that is subject to
the jurisdiction of the Commission, shall provide to
the Commission an analysis of how the structure of such
market meets the following criteria:
(A) The structure of such market utilizes
competitive market forces to the extent
practicable in procuring capacity resources.
(B) Consistent with subparagraph (A), the
structure of such market includes resource-
neutral performance criteria that ensure the
procurement of sufficient capacity from
physical generation facilities that have
reliability attributes that include--
(i)(I) possession of adequate fuel
on-site to enable operation for an
extended period of time;
(II) the operational ability to
generate electric energy from more than
one fuel source; or
(III) fuel certainty, through firm
contractual obligations, that ensures
adequate fuel supply to enable
operation, for an extended period of
time, for the duration of an emergency
or severe weather conditions;
(ii) operational characteristics that
enable the generation of electric
energy for the duration of an emergency
or severe weather conditions; and
(iii) unless procured through other
markets or procurement mechanisms,
essential reliability services,
including frequency support and
regulation services.
(2) Commission evaluation and report.--Not later than
1 year after the date of enactment of this section, the
Commission shall make publicly available, and submit to
the Committee on Energy and Commerce in the House of
Representatives and the Committee on Energy and Natural
Resources in the Senate, a report containing--
(A) evaluation of whether the structure of
each market addressed in an analysis submitted
pursuant to paragraph (1) meets the criteria
under such paragraph, based on the analysis;
and
(B) to the extent a market so addressed does
not meet such criteria, any recommendations
with respect to the procurement of sufficient
capacity, as described in paragraph (1)(B).
(b) Commission Evaluation and Report for New Schedules.--
(1) Inclusion of analysis in filing.--Except as
provided in subsection (a)(2), whenever a Regional
Transmission Organization or Independent System
Operator files a new schedule under section 205 to
establish a market described in subsection (a)(1), or
that substantially modifies the capacity market design
of a market described in subsection (a)(1), the
Regional Transmission Organization or Independent
System Operator shall include in any such filing the
analysis required by subsection (a)(1).
(2) Evaluation and report.--Not later than 180 days
of receiving an analysis under paragraph (1), the
Commission shall make publicly available, and submit to
the Committee on Energy and Commerce in the House of
Representatives and the Committee on Energy and Natural
Resources in the Senate, a report containing--
(A) an evaluation of whether the structure of
the market addressed in the analysis meets the
criteria under subsection (a)(1), based on the
analysis; and
(B) to the extent the market does not meet
such criteria, any recommendations with respect
to the procurement of sufficient capacity, as
described in subsection (a)(1)(B).
(c) Effect on Existing Approvals.--Nothing in this section
shall be considered to--
(1) require a modification of the Commission's
approval of the capacity market design approved
pursuant to docket numbers ER15-623-000, EL15-29-000,
EL14-52-000, and ER14-2419-000; or
(2) provide grounds for the Commission to grant
rehearing or otherwise modify orders issued in those
dockets.
* * * * * * *
PART III--LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND ADMINISTRATIVE
PROVISIONS
* * * * * * *
rehearings; court review of orders
Sec. 313. (a) Any person, electric utility, State,
municipality, or State commission aggrieved by an order issued
by the Commission in a proceeding under this Act to which such
person, electric utility, State, municipality, or State
commission is a party may apply for a rehearing within thirty
days after the issuance of such order. The application for
rehearing shall set forth specifically the ground or grounds
upon which such application is based. Upon such application the
Commission shall have power to grant or deny rehearing or to
abrogate or modify its order without further hearing. Unless
the Commission acts upon the application for rehearing within
thirty days after it is filed, such application may be deemed
to have been denied. No proceeding to review any orders of the
Commission shall be brought by any entity unless such entity
shall have made application to the Commission for a rehearing
thereon. Until the record in a proceeding shall have been filed
in a court of appeals, as provided in subsection (b), the
Commission may at any time, upon reasonable notice and in such
manner as it shall deem proper, modify or set aside, in whole
or in part, any finding or order made or issued by it under the
provisions of this act.
[(b) Any party]
(b) Judicial Review.--
(1) In general.--Any party to a proceeding under this
Act aggrieved by an order issued by the Commission in
such proceeding may obtain a review of such order in
the Circuit Court of Appeals of the United States for
any circuit wherein the licensee or public utility to
which the order relates is located or has its principal
place of business, or in the United States Court of
Appeals for the District of Columbia, by filing in such
court, within sixty days after the order of the
Commission upon the application for rehearing, a
written petition praying that the order of the
Commission be modified or set aside in whole or in
part. A copy of such petition shall forthwith be
transmitted by the clerk of the court to any member of
the Commission and thereupon the Commission shall file
with the court the record upon which the order
complained of was entered, as provided in section 2112
of title 28, United States Code. Upon the filing of
such petition such court shall have jurisdiction, which
upon the filing of the record with it shall be
exclusive, to affirm, modify, or set aside such order
in whole or in part. No objection to the order of the
Commission shall be considered by the court unless such
objection shall have been urged before the Commission
in the application for rehearing unless there is
reasonable ground for failure so to do. The finding of
the Commission as to the facts, if supported by
substantial evidence, shall be conclusive. If any party
shall apply to the court for leave to adduce additional
evidence, and shall show to the satisfaction of the
court that such additional evidence is material and
that there were reasonable grounds for failure to
adduce such evidence in the proceedings before the
Commission, the court may order such additional
evidence to be taken before the Commission and to be
adduced upon the hearing in such manner and upon such
terms and conditions as the court may deem proper. The
Commission may modify its findings as to the facts by
reason of additional evidence so taken, and it shall
file with the court such modified or new findings
which, if supported by substantial evidence, shall be
conclusive, and its recommendation, if any, for the
modification or setting aside of the original order.
The judgment and decree of the court, affirming,
modifying, or setting aside, in whole or in part, any
such order of the Commission, shall be final, subject
to review by the Supreme Court of the United States
upon certiorari or certification as provided in
sections 239 and 240 of the Judicial Code, as amended
(U.S.C., title 28, secs. 346 and 347).
(2) Delay of a federal authorization.--Any Federal,
State, or local government agency or Indian tribe that
will not complete its disposition of a Federal
authorization by the deadline set forth in the schedule
by the Commission under section 34 may file for an
extension in the United States court of appeals for any
circuit wherein the project or proposed project is
located, or in the United States Court of Appeals for
the District of Columbia. Such petition shall be filed
not later than 30 days prior to such deadline. The
court shall only grant an extension if the agency or
tribe demonstrates, based on the record maintained
under section 34, that it otherwise complied with the
requirements of section 34 and that complying with the
schedule set by the Commission would have prevented the
agency or tribe from complying with applicable Federal
or State law. If the court grants the extension, the
court shall set a reasonable schedule and deadline, not
to exceed 90 days, for the agency to act on remand. If
the court denies the extension, or if an agency or
tribe does not file for an extension as provided in
this subsection and does not complete its disposition
of a Federal authorization by the applicable deadline,
the Commission and applicant may move forward with the
proposed action.
(c) The filing of an application for rehearing under
subsection (a) shall not, unless specifically ordered by the
Commission, operate as a stay of the Commission's order. The
commencement of proceedings under subsection (b) of this
section shall not, unless specifically ordered by the court,
operate as a stay of the Commission's order.
* * * * * * *
[office of public participation
[Sec. 319. (a)(1) There shall be an office in the Commission
to be known as the Office of Public Participation (hereinafter
in this section referred to as the ``Office'').
[(2)(A) The Office shall be administered by a Director. The
Director shall be appointed by the Chairman with the approval
of the Commission. The Director may be removed during his term
of office by the Chairman, with the approval of the Commission,
only for inefficiency, neglect of duty, or malfeasance in
office.
[(B) The term of office of the Director shall be 4 years. The
Director shall be responsible for the discharge of the
functions and duties of the Office. He shall be appointed and
compensated at a rate not in excess of the maximum rate
prescribed for GS-18 of the General Schedule under section 5332
of title 5 of the United States Code.
[(3) The Director may appoint, and assign the duties of,
employees of such Office, and with the concurrence of the
Commission he may fix the compensation of such employees and
procure temporary and intermittent services to the same extent
as is authorized under section 3109 of title 5, United States
Code.
[(b)(1) The Director shall coordinate assistance to the
public with respect to authorities exercised by the Commission.
The Director shall also coordinate assistance available to
persons intervening or participating or proposing to intervene
or participate in proceedings before the Commission.
[(2) The Commission may, under rules promulgated by it,
provide compensation for reasonable attorney's fees, expert
witness fees, and other costs of intervening or participating
in any proceeding before the Commission to any person whose
intervention, or participation substantially contributed to the
approval, in whole or in part, of a position advocated by such
person. Such compensation may be paid only if the Commission
has determined that--
[(A) the proceeding is significant, and
[(B) such person's intervention or participation in
such proceeding without receipt of compensation
constitutes a significant financial hardship to him.
[(3) Nothing in this subsection affects or restricts any
rights of any intervenor or participant under any other
applicable law or rule of law.
[(4) There are to be appropriated to the Secretary of Energy
to be used by the Office for purposes of compensation of
persons under the provisions of this subsection not to exceed
$500,000 for the fiscal year 1978, not to exceed $2,000,000 for
the fiscal year 1979, not to exceed $2,200,000 for the fiscal
year 1980, and not to exceed $2,400,000 for the fiscal year
1981.]
SEC. 319. OFFICE OF COMPLIANCE ASSISTANCE AND PUBLIC PARTICIPATION.
(a) Establishment.--There is established within the
Commission an Office of Compliance Assistance and Public
Participation (referred to in this section as the ``Office'').
The Office shall be headed by a Director.
(b) Duties of Director.--
(1) In general.--The Director of the Office shall
promote improved compliance with Commission rules and
orders by--
(A) making recommendations to the Commission
regarding--
(i) the protection of consumers;
(ii) market integrity and support for
the development of responsible market
behavior;
(iii) the application of Commission
rules and orders in a manner that
ensures that--
(I) rates and charges for, or
in connection with, the
transmission or sale of
electric energy subject to the
jurisdiction of the Commission
shall be just and reasonable
and not unduly discriminatory
or preferential; and
(II) markets for such
transmission and sale of
electric energy are not
impaired and consumers are not
damaged; and
(iv) the impact of existing and
proposed Commission rules and orders on
small entities, as defined in section
601 of title 5, United States Code
(commonly known as the Regulatory
Flexibility Act);
(B) providing entities subject to regulation
by the Commission the opportunity to obtain
timely guidance for compliance with Commission
rules and orders; and
(C) providing information to the Commission
and Congress to inform policy with respect to
energy issues under the jurisdiction of the
Commission.
(2) Reports and guidance.--The Director shall, as the
Director determines appropriate, issue reports and
guidance to the Commission and to entities subject to
regulation by the Commission, regarding market
practices, proposing improvements in Commission
monitoring of market practices, and addressing
potential improvements to both industry and Commission
practices.
(3) Outreach.--The Director shall promote improved
compliance with Commission rules and orders through
outreach, publications, and, where appropriate, direct
communication with entities regulated by the
Commission.
* * * * * * *
----------
PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978
* * * * * * *
TITLE I--RETAIL REGULATORY POLICIES FOR ELECTRIC UTILITIES
Subtitle A--General Provisions
* * * * * * *
SEC. 102. COVERGE.
(a) Volume of Total Retail Sales.--This title applies to each
utility in any calendar year, and to each proceeding relating
to each electric utility in such year, if the total sales of
electric energy by such utility for purposes other than resale
exceeded 500 million kilowatt-hours during any calendar year
beginning after December 31, 1975, and before the immediately
preceding calendar year.
(b) Exclusion of Wholesale Sales.--The requirements of this
title do not apply to the operations of an electric utility, or
to proceedings respecting such operations, to the extent that
such operations or proceedings relate to sales of electric
energy for purposes of resale.
(c) List of Covered Utilities.--Before the beginning of each
calendar year, the Secretary shall publish a list identifying
each electric utility to which this title applies during such
calendar year. Promptly after publication of such list each
State regulatory authority shall notify the Secretary of each
electric utility on the list for which such State regulatory
authority has ratemaking authority.
(d) Coverage for Competitive Markets.--The requirements of
this title do not apply to the operations of an electric
utility, or to proceedings respecting such operations, to the
extent that such operations or proceedings, or any portion
thereof, relate to the competitive sale of retail electric
energy that is unbundled or separated from the regulated
provision or sale of distribution service.
* * * * * * *
Subtitle B--Standards For Electric Utilities
SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING
STANDARDS.
(a) Consideration and Determination.--Each State regulatory
authority (with respect to each electric utility for which it
has ratemaking authority) and each nonregulated electric
utility shall consider each standard established by subsection
(d) and make a determination concerning whether or not it is
appropriate to implement such standard to carry out the
purposes of this title. For purposes of such consideration and
determination in accordance with subsections (b) and (c), and
for purposes of any review of such consideration and
determination in any court in accordance with section 123, the
purposes of this title supplement otherwise applicable State
law. Nothing in this subsection prohibits any State regulatory
authority or nonregulated electric utility from making any
determination that it is not appropriate to implement any such
standard, pursuant to its authority under otherwise applicable
State law.
(b) Procedural Requirements for Consideration and
Determination.--(1) The consideration referred to in subsection
(a) shall be made after public notice and hearing. The
determination referred to in subsection (a) shall be--
(A) in writing,
(B) based upon findings included in such
determination and upon the evidence presented at the
hearing, and
(C) available to the public.
(2) Except as otherwise provided in paragraph (1), in the
second sentence of section 112(a), and in sections 121 and 122,
the procedures for the consideration and determination referred
to in subsection (a) shall be those established by the State
regulatory authority or the nonregulated electric utility.
(c) Implementation.--(1) The State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) or nonregulated electric utility may, to the extent
consistent with otherwise applicable State law--
(A) implement any such standard determined under
subsection (a) to be appropriate to carry out the
purposes of this title, or
(B) decline to implement any such standard.
(2) If a State regulatory authority (with respect to each
electric utility for which it has ratemaking authority) or
nonregulated electric utility declines to implement any
standard established by subsection (d) which is determined
under subsection (a) to be appropriate to carry out the
purposes of this title, such authority or nonregulated electric
utility shall state in writing the reasons therefor. Such
statement of reasons shall be available to the public.
(3) If a State regulatory authority implements a
standard established by subsection (d)(7) or (8), such
authority shall--
(A) consider the impact that implementation
of such standard would have on small businesses
engaged in the design, sale, supply,
installation or servicing of energy
conservation, energy efficiency or other demand
side management measures, and
(B) implement such standard so as to assure
that utility actions would not provide such
utilities with unfair competitive advantages
over such small businesses.
(d) Establishment.--The following Federal standards are
hereby established:
(1) Cost of service.--Rates charged by any electric
utility for providing electric service to each class of
electric consumers shall be designed, to the maximum
extent practicable, to reflect the cost of providing
electric service to such class, as determined under
section 115(a).
(2) Declining block rates.--The energy component of a
rate, or the amount attributable to the energy
component in a rate, charged by any electric utility
for providing electric service during any period to any
class of electric consumers may not decrease as
kilowatt-hour consumption by such class increases
during such period except to the extent that such
utility demonstrates that the costs to such utility of
providing electric service to such class, which costs
are attributable to such energy component, decrease as
such consumption increases during such period.
(3) Time-of-day rates.--The rates charged by any
electric utility for providing electric service to such
class of electric consumers shall be on a time-of-day
basis which reflects the costs of providing electric
service to such class of electric consumers at
different times of the day unless such rates are not
cost-effective with respect to such class, as
determined under section 115(b).
(4) Seasonal rates.--The rates charged by an electric
utility for providing electric service to each class of
electric consumers shall be on a seasonal basis which
reflects the costs of providing service to each class
of consumers at different seasons of the year to the
extent that such costs vary seasonally for such
utility.
(5) Interruptible rates.--Each electric utility shall
offer each industrial and commercial electric consumer
an interruptible rate which reflects the cost of
providing interruptible service to the class of which
such consumer is a member.
(6) Load management techniques.--Each electric
utility shall offer to its electric consumers such load
management techniques as the State regulatory authority
(or the nonregulated electric utility) has determined
will--
(A) be practicable and cost-effective, as
determined under section 115(c),
(B) be reliable, and
(C) provide useful energy or capacity
management advantages to the electric utility.
(7) Integrated resource planning.--Each electric
utility shall employ integrated resource planning. All
plans or filings before a State regulatory authority to
meet the requirements of this paragraph must be updated
on a regular basis, must provide the opportunity for
public participation and comment, and contain a
requirement that the plan be implemented.
(8) Investments in conservation and demand
management.--The rates allowed to be charged by a State
regulated electric utility shall be such that the
utility's investment in and expenditures for energy
conservation, energy efficiency resources, and other
demand side management measures are at least as
profitable, giving appropriate consideration to income
lost from reduced sales due to investments in and
expenditures for conservation and efficiency, as its
investments in and expenditures for the construction of
new generation, transmission, and distribution
equipment. Such energy conservation, energy efficiency
resources and other demand side management measures
shall be appropriately monitored and evaluated.
(9) Energy efficiency investments in power generation
and supply.--The rates charged by any electric utility
shall be such that the utility is encouraged to make
investments in, and expenditures for, all cost-
effective improvements in the energy efficiency of
power generation, transmission and distribution. In
considering regulatory changes to achieve the
objectives of this paragraph, State regulatory
authorities and nonregulated electric utilities shall
consider the disincentives caused by existing
ratemaking policies, and practices, and consider
incentives that would encourage better maintenance, and
investment in more efficient power generation,
transmission and distribution equipment.
(10) Consideration of the effects of wholesale power
purchases on utility cost of capital; effects of
leveraged capital structures on the reliability of
wholesale power sellers; and assurance of adequate fuel
supplies.--(A) To the extent that a State regulatory
authority requires or allows electric utilities for
which it has ratemaking authority to consider the
purchase of long-term wholesale power supplies as a
means of meeting electric demand, such authority shall
perform a general evaluation of:
(i) the potential for increases or decreases
in the costs of capital for such utilities, and
any resulting increases or decreases in the
retail rates paid by electric consumers, that
may result from purchases of long-term
wholesale power supplies in lieu of the
construction of new generation facilities by
such utilities;
(ii) whether the use by exempt wholesale
generators (as defined in section 32 of the
Public Utility Holding Company Act of 1935) of
capital structures which employ proportionally
greater amounts of debt than the capital
structures of such utilities threatens
reliability or provides an unfair advantage for
exempt wholesale generators over such
utilities;
(iii) whether to implement procedures for the
advance approval or disapproval of the purchase
of a particular long-term wholesale power
supply; and
(iv) whether to require as a condition for
the approval of the purchase of power that
there be reasonable assurances of fuel supply
adequacy.
(B) For purposes of implementing the provisions of
this paragraph, any reference contained in this section
to the date of enactment of the Public Utility
Regulatory Policies Act of 1978 shall be deemed to be a
reference to the date of enactment of this paragraph.
(C) Notwithstanding any other provision of Federal
law, nothing in this paragraph shall prevent a State
regulatory authority from taking such action, including
action with respect to the allowable capital structure
of exempt wholesale generators, as such State
regulatory authority may determine to be in the public
interest as a result of performing evaluations under
the standards of subparagraph (A).
(D) Notwithstanding section 124 and paragraphs (1)
and (2) of section 112(a), each State regulatory
authority shall consider and make a determination
concerning the standards of subparagraph (A) in
accordance with the requirements of subsections (a) and
(b) of this section, without regard to any proceedings
commenced prior to the enactment of this paragraph.
(E) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall
consider and make a determination concerning whether it
is appropriate to implement the standards set out in
subparagraph (A) not later than one year after the date
of enactment of this paragraph.
(11) Net metering.--Each electric utility shall make
available upon request net metering service to any
electric consumer that the electric utility serves. For
purposes of this paragraph, the term ``net metering
service'' means service to an electric consumer under
which electric energy generated by that electric
consumer from an eligible on-site generating facility
and delivered to the local distribution facilities may
be used to offset electric energy provided by the
electric utility to the electric consumer during the
applicable billing period.
(12) Fuel sources.--Each electric utility shall
develop a plan to minimize dependence on 1 fuel source
and to ensure that the electric energy it sells to
consumers is generated using a diverse range of fuels
and technologies, including renewable technologies.
(13) Fossil fuel generation efficiency.--Each
electric utility shall develop and implement a 10-year
plan to increase the efficiency of its fossil fuel
generation.
(14) Time-based metering and communications.--(A) Not
later than 18 months after the date of enactment of
this paragraph, each electric utility shall offer each
of its customer classes, and provide individual
customers upon customer request, a time-based rate
schedule under which the rate charged by the electric
utility varies during different time periods and
reflects the variance, if any, in the utility's costs
of generating and purchasing electricity at the
wholesale level. The time-based rate schedule shall
enable the electric consumer to manage energy use and
cost through advanced metering and communications
technology.
(B) The types of time-based rate schedules that may
be offered under the schedule referred to in
subparagraph (A) include, among others--
(i) time-of-use pricing whereby electricity
prices are set for a specific time period on an
advance or forward basis, typically not
changing more often than twice a year, based on
the utility's cost of generating and/or
purchasing such electricity at the wholesale
level for the benefit of the consumer. Prices
paid for energy consumed during these periods
shall be pre-established and known to consumers
in advance of such consumption, allowing them
to vary their demand and usage in response to
such prices and manage their energy costs by
shifting usage to a lower cost period or
reducing their consumption overall;
(ii) critical peak pricing whereby time-of-
use prices are in effect except for certain
peak days, when prices may reflect the costs of
generating and/or purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption;
(iii) real-time pricing whereby electricity
prices are set for a specific time period on an
advanced or forward basis, reflecting the
utility's cost of generating and/or purchasing
electricity at the wholesale level, and may
change as often as hourly; and
(iv) credits for consumers with large loads
who enter into pre-established peak load
reduction agreements that reduce a utility's
planned capacity obligations.
(C) Each electric utility subject to subparagraph (A)
shall provide each customer requesting a time-based
rate with a time-based meter capable of enabling the
utility and customer to offer and receive such rate,
respectively.
(D) For purposes of implementing this paragraph, any
reference contained in this section to the date of
enactment of the Public Utility Regulatory Policies Act
of 1978 shall be deemed to be a reference to the date
of enactment of this paragraph.
(E) In a State that permits third-party marketers to
sell electric energy to retail electric consumers, such
consumers shall be entitled to receive the same time-
based metering and communications device and service as
a retail electric consumer of the electric utility.
(F) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall, not
later than 18 months after the date of enactment of
this paragraph conduct an investigation in accordance
with section 115(i) and issue a decision whether it is
appropriate to implement the standards set out in
subparagraphs (A) and (C).
(15) Interconnection.--Each electric utility shall
make available, upon request, interconnection service
to any electric consumer that the electric utility
serves. For purposes of this paragraph, the term
``interconnection service'' means service to an
electric consumer under which an on-site generating
facility on the consumer's premises shall be connected
to the local distribution facilities. Interconnection
services shall be offered based upon the standards
developed by the Institute of Electrical and
Electronics Engineers: IEEE Standard 1547 for
Interconnecting Distributed Resources with Electric
Power Systems, as they may be amended from time to
time. In addition, agreements and procedures shall be
established whereby the services are offered shall
promote current best practices of interconnection for
distributed generation, including but not limited to
practices stipulated in model codes adopted by
associations of state regulatory agencies. All such
agreements and procedures shall be just and reasonable,
and not unduly discriminatory or preferential.
(16) Integrated resource planning.--Each electric
utility shall--
(A) integrate energy efficiency resources
into utility, State, and regional plans; and
(B) adopt policies establishing cost-
effective energy efficiency as a priority
resource.
(17) Rate design modifications to promote energy
efficiency investments.--
(A) In general.--The rates allowed to be
charged by any electric utility shall--
(i) align utility incentives with the
delivery of cost-effective energy
efficiency; and
(ii) promote energy efficiency
investments.
(B) Policy options.--In complying with
subparagraph (A), each State regulatory
authority and each nonregulated utility shall
consider--
(i) removing the throughput incentive
and other regulatory and management
disincentives to energy efficiency;
(ii) providing utility incentives for
the successful management of energy
efficiency programs;
(iii) including the impact on
adoption of energy efficiency as 1 of
the goals of retail rate design,
recognizing that energy efficiency must
be balanced with other objectives;
(iv) adopting rate designs that
encourage energy efficiency for each
customer class;
(v) allowing timely recovery of
energy efficiency-related costs; and
(vi) offering home energy audits,
offering demand response programs,
publicizing the financial and
environmental benefits associated with
making home energy efficiency
improvements, and educating homeowners
about all existing Federal and State
incentives, including the availability
of low-cost loans, that make energy
efficiency improvements more
affordable.
(18) Consideration of smart grid investments.--
(A) In general.--Each State shall consider
requiring that, prior to undertaking
investments in nonadvanced grid technologies,
an electric utility of the State demonstrate to
the State that the electric utility considered
an investment in a qualified smart grid system
based on appropriate factors, including--
(i) total costs;
(ii) cost-effectiveness;
(iii) improved reliability;
(iv) security;
(v) system performance; and
(vi) societal benefit.
(B) Rate recovery.--Each State shall consider
authorizing each electric utility of the State
to recover from ratepayers any capital,
operating expenditure, or other costs of the
electric utility relating to the deployment of
a qualified smart grid system, including a
reasonable rate of return on the capital
expenditures of the electric utility for the
deployment of the qualified smart grid system.
(C) Obsolete equipment.--Each State shall
consider authorizing any electric utility or
other party of the State to deploy a qualified
smart grid system to recover in a timely manner
the remaining book-value costs of any equipment
rendered obsolete by the deployment of the
qualified smart grid system, based on the
remaining depreciable life of the obsolete
equipment.
(19) Smart grid information.--
(A) Standard.--All electricity purchasers
shall be provided direct access, in written or
electronic machine-readable form as
appropriate, to information from their
electricity provider as provided in
subparagraph (B).
(B) Information.--Information provided under
this section, to the extent practicable, shall
include:
(i) Prices.--Purchasers and other
interested persons shall be provided
with information on--
(I) time-based electricity
prices in the wholesale
electricity market; and
(II) time-based electricity
retail prices or rates that are
available to the purchasers.
(ii) Usage.--Purchasers shall be
provided with the number of electricity
units, expressed in kwh, purchased by
them.
(iii) Intervals and projections.--
Updates of information on prices and
usage shall be offered on not less than
a daily basis, shall include hourly
price and use information, where
available, and shall include a day-
ahead projection of such price
information to the extent available.
(iv) Sources.--Purchasers and other
interested persons shall be provided
annually with written information on
the sources of the power provided by
the utility, to the extent it can be
determined, by type of generation,
including greenhouse gas emissions
associated with each type of
generation, for intervals during which
such information is available on a
cost-effective basis.
(C) Access.--Purchasers shall be able to
access their own information at any time
through the Internet and on other means of
communication elected by that utility for Smart
Grid applications. Other interested persons
shall be able to access information not
specific to any purchaser through the Internet.
Information specific to any purchaser shall be
provided solely to that purchaser.
(20) Improving the resilience of electric
infrastructure.--
(A) In general.--Each electric utility shall
develop a plan to use resiliency-related
technologies, upgrades, measures, and other
approaches designed to improve the resilience
of electric infrastructure, mitigate power
outages, continue delivery of vital services,
and maintain the flow of power to facilities
critical to public health, safety, and welfare,
to the extent practicable using the most
current data, metrics, and frameworks related
to current and future threats, including
physical and cyber attacks, electromagnetic
pulse attacks, geomagnetic disturbances,
seismic events, and severe weather and other
environmental stressors.
(B) Resiliency-related technologies.--For
purposes of this paragraph, examples of
resiliency-related technologies, upgrades,
measures, and other approaches include--
(i) hardening, or other enhanced
protection, of utility poles, wiring,
cabling, and other distribution
components, facilities, or structures;
(ii) advanced grid technologies
capable of isolating or repairing
problems remotely, such as advanced
metering infrastructure, high-tech
sensors, grid monitoring and control
systems, and remote reconfiguration and
redundancy systems;
(iii) cybersecurity products and
components;
(iv) distributed generation,
including back-up generation to power
critical facilities and essential
services, and related integration
components, such as advanced inverter
technology;
(v) microgrid systems, including
hybrid microgrid systems for isolated
communities;
(vi) combined heat and power;
(vii) waste heat resources;
(viii) non-grid-scale energy storage
technologies;
(ix) wiring, cabling, and other
distribution components, including
submersible distribution components,
and enclosures;
(x) electronically controlled
reclosers and similar technologies for
power restoration, including emergency
mobile substations, as defined in
section 1105 of the North American
Energy Security and Infrastructure Act
of 2015;
(xi) advanced energy analytics
technology, such as Internet-based and
cloud-based computing solutions and
subscription licensing models;
(xii) measures that enhance
resilience through planning,
preparation, response, and recovery
activities;
(xiii) operational capabilities to
enhance resilience through rapid
response recovery; and
(xiv) measures to ensure availability
of key critical components through
contracts, cooperative agreements,
stockpiling and prepositioning, or
other measures.
(C) Rate recovery.--Each State regulatory
authority (with respect to each electric
utility for which it has ratemaking authority)
shall consider authorizing each such electric
utility to recover any capital, operating
expenditure, or other costs of the electric
utility related to the procurement, deployment,
or use of resiliency-related technologies,
including a reasonable rate of return on the
capital expenditures of the electric utility
for the procurement, deployment, or use of
resiliency-related technologies.
(21) Promoting investments in advanced energy
analytics technology.--
(A) In general.--Each electric utility shall
develop and implement a plan for deploying
advanced energy analytics technology.
(B) Rate recovery.--Each State regulatory
authority (with respect to each electric
utility for which it has ratemaking authority)
shall consider confirming and clarifying, if
necessary, that each such electric utility is
authorized to recover the costs of the electric
utility relating to the procurement,
deployment, or use of advanced energy analytics
technology, including a reasonable rate of
return on all such costs incurred by the
electric utility for the procurement,
deployment, or use of advanced energy analytics
technology, provided such technology is used by
the electric utility for purposes of realizing
operational efficiencies, cost savings,
enhanced energy management and customer
engagement, improvements in system reliability,
safety, and cybersecurity, or other benefits to
ratepayers.
(C) Advanced energy analytics technology.--
For purposes of this paragraph, examples of
advanced energy analytics technology include
Internet-based and cloud-based computing
solutions and subscription licensing models,
including software as a service that uses
cyber-physical systems to allow the correlation
of data aggregated from appropriate data
sources and smart grid sensor networks, employs
analytics and machine learning, or employs
other advanced computing solutions and models.
(22) Assuring electric reliability with reliable
generation.--
(A) Assurance of electric reliability.--Each
electric utility shall adopt or modify policies
to ensure that such electric utility
incorporates reliable generation into its
integrated resource plan to assure the
availability of electric energy over a 10-year
planning period.
(B) Reliable generation.--For purposes of
this paragraph, ``reliable generation'' means
electric generation facilities with reliability
attributes that include--
(i)(I) possession of adequate fuel
on-site to enable operation for an
extended period of time;
(II) the operational ability to
generate electric energy from more than
one source; or
(III) fuel certainty, through firm
contractual obligations, that ensures
adequate fuel supply to enable
operation, for an extended period of
time, for the duration of an emergency
or severe weather conditions;
(ii) operational characteristics that
enable the generation of electric
energy for the duration of an emergency
or severe weather conditions; and
(iii) unless procured through other
procurement mechanisms, essential
reliability services, including
frequency support and regulation
services.
(23) Subsidization of customer-side technology.--
(A) Consideration.--To the extent that a
State regulatory authority may require or allow
rates charged by any electric utility for which
it has ratemaking authority to electric
consumers that do not use a customer-side
technology to include any cost, fee, or charge
that directly or indirectly cross-subsidizes
the deployment, construction, maintenance, or
operation of that customer-side technology,
such authority shall evaluate whether
subsidizing the deployment, construction,
maintenance, or operation of a customer-side
technology would--
(i) result in benefits predominately
enjoyed by only the users of that
customer-side technology;
(ii) shift costs of a customer-side
technology to electricity consumers
that do not use that customer-side
technology, particularly where
disparate economic or resource
conditions exist among the electricity
consumers cross-subsidizing the
costumer-side technology;
(iii) negatively affect resource
utilization, fuel diversity, or grid
security;
(iv) provide any unfair competitive
advantage to market the customer-side
technology; and
(v) be necessary to fulfill an
obligation to serve electric consumers.
(B) Public notice.--Each State regulatory
authority shall make available to the public
the evaluation completed under subparagraph (A)
at least 90 days prior to any proceedings in
which such authority considers the cross-
subsidization of a customer-side technology.
(C) Customer-side technology.--For purposes
of this paragraph, the term ``customer-side
technology'' means a device connected to the
electricity distribution system--
(i) at, or on the customer side of,
the meter; or
(ii) that, if owned or operated by or
on behalf of an electric utility, would
otherwise be at, or on the customer
side of, the meter.
SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE.
(a) Request for Consideration and Determination.--Each State
regulatory authority (with respect to each electric utility for
which it has ratemaking authority) and each nonregulated
electric utility may undertake the consideration and make the
determination referred to in section 111 with respect to any
standard established by section 111(d) in any proceeding
respecting the rates of the electric utility. Any participant
or intervenor (including an intervenor referred to in section
121) in such a proceeding may request, and shall obtain, such
consideration and determination in such proceeding. In
undertaking such consideration and making such determination in
any such proceeding with respect to the application to any
electric utility of any standard established by section 111(d),
a State regulatory authority (with respect to an electric
utility for which it has ratemaking authority) or nonregulated
electric utility may take into account in such proceeding--
(1) any appropriate prior determination with respect
to such standard--
(A) which is made in a proceeding which takes
place after the date of the enactment of this
Act, or
(B) which was made before such date (or is
made in a proceeding pending on such date) and
complies, as provided in section 124, with the
requirements of this title; and
(2) the evidence upon which such prior determination
was based (if such evidence is referenced in such
proceeding).
(b) Time Limitations.--(1) Not later than 2 years after the
date of the enactment of this Act (or after the enactment of
the Comprehensive National Energy Policy Act in the case of
standards under paragraphs (7), (8), and (9) of section
111(d)), each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority) and
each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to each standard
established by section 111(d).
(2) Not later than three years after the date of the
enactment of this Act (or after the enactment of the
Comprehensive National Energy Policy Act in the case of
standards under paragraphs (7), (8), and (9) of section
111(d)), each State regulatory authority (with respect to each
electric utility for which it has ratemaking authority), and
each nonregulated electric utility, shall complete the
consideration, and shall make the determination, referred to in
section 111 with respect to each standard established by
section 111(d).
(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to each standard
established by paragraphs (11) through (13) of section 111(d).
(B) Not later than 3 years after the date of the enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which it has ratemaking
authority), and each nonregulated electric utility, shall
complete the consideration, and shall make the determination,
referred to in section 111 with respect to each standard
established by paragraphs (11) through (13) of section 111(d).
(4)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated electric
utility shall commence the consideration referred to in
section 111, or set a hearing date for such
consideration, with respect to the standard established
by paragraph (14) of section 111(d).
(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to the standard
established by paragraph (14) of section 111(d).
(5)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility
shall commence the consideration referred to in section
111, or set a hearing date for consideration, with
respect to the standard established by paragraph (15)
of section 111(d).
(B) Not later than two years after the date of the
enactment of the this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraph (15) of section
111(d).
(6)(A) Not later than 1 year after the enactment of
this paragraph, each State regulatory authority (with
respect to each electric utility for which it has
ratemaking authority) and each nonregulated utility
shall commence the consideration referred to in section
111, or set a hearing date for consideration, with
respect to the standards established by paragraphs (16)
through (19) of section 111(d).
(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraphs (16) through (19) of
section 111(d).
(7)(A) Not later than 1 year after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority) and each
nonregulated electric utility, as applicable, shall
commence the consideration referred to in section 111,
or set a hearing date for consideration, with respect
to the standards established by paragraphs (20), (22),
and (23) of section 111(d).
(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority) and each
nonregulated electric utility, as applicable, shall
complete the consideration, and shall make the
determination, referred to in section 111 with respect
to each standard established by paragraphs (20), (22),
and (23) of section 111(d).
(8)(A) Not later than 6 months after the date of
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority) and each
nonregulated electric utility shall commence the
consideration referred to in section 111, or set a
hearing date for consideration, with respect to the
standard established by paragraph (21) of section
111(d).
(B) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority) and each nonregulated electric
utility shall complete the consideration, and shall
make the determination, referred to in section 111 with
respect to the standard established by paragraph (21)
of section 111(d).
(c) Failure To Comply.--Each State regulatory authority (with
respect to each electric utility for which it has ratemaking
authority) and each nonregulated electric utility shall
undertake the consideration, and make the determination,
referred to in section 111 with respect to each standard
established by section 111(d) in the first rate proceeding
commenced after the date three years after the date of
enactment of this Act respecting the rates of such utility if
such State regulatory authority or nonregulated electric
utility has not, before such date, complied with subsection
(b)(2) with respect to such standard. In the case of each
standard established by paragraphs (11) through (13) of section
111(d), the reference contained in this subsection to the date
of enactment of this Act shall be deemed to be a reference to
the date of enactment of such paragraphs (11) through (13). In
the case of the standard established by paragraph (14) of
section 111(d), the reference contained in this subsection to
the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14). In
the case of the standard established by paragraph (15), the
reference contained in this subsection to the date of enactment
of this Act shall be deemed to be a reference to the date of
enactment of paragraph (15). In the case of the standards
established by paragraphs (16) through (19) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of such paragraphs. In the case of the
standards established by paragraphs (20) through (23) of
section 111(d), the reference contained in this subsection to
the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraphs.
(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) and paragraphs (16) through (19)
of section 111(d) in the case of any electric utility in a
State if, before the enactment of this subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.
(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility
within the previous 3 years; or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility within the previous 3 years.
(f) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (15) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
(1) the State has implemented for such utility the
standard concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.
(g) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to a standard established by paragraph
(20), (21), (22), or (23) of section 111(d) in the case of any
electric utility in a State if--
(1) before the date of enactment of this subsection,
the State has implemented for such utility the standard
concerned (or a comparable standard);
(2) the State regulatory authority for such State or
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility
during the 3-year period ending on the date of
enactment of this subsection; or
(3) the State legislature has voted on the
implementation of the standard concerned (or a
comparable standard) for such utility during the 3-year
period ending on the date of enactment of this
subsection.
* * * * * * *
----------
ENERGY POLICY ACT OF 2005
* * * * * * *
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
* * * * * * *
SEC. 203. FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the
Secretary, shall seek to ensure that, to the extent
economically feasible and technically practicable, of the total
amount of electric energy the Federal Government consumes
during any fiscal year, the following amounts shall be
renewable energy:
(1) Not less than 3 percent in fiscal years 2007
through 2009.
(2) Not less than 5 percent in fiscal years 2010
through 2012.
(3) Not less than 7.5 percent in fiscal year 2013 and
each fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any lignin
waste material that is segregated from other waste
materials and is determined to be nonhazardous by the
Administrator of the Environmental Protection Agency
and any solid, nonhazardous, cellulosic material that
is derived from--
(A) any of the following forest-related
resources: mill residues, precommercial
thinnings, slash, and brush, or nonmerchantable
material;
(B) solid wood waste materials, including
waste pallets, crates, dunnage, manufacturing
and construction wood wastes (other than
pressure-treated, chemically-treated, or
painted wood wastes), and landscape or right-
of-way tree trimmings, but not including
municipal solid waste (garbage), gas derived
from the biodegradation of solid waste, or
paper that is commonly recycled;
(C) agriculture wastes, including orchard
tree crops, vineyard, grain, legumes, sugar,
and other crop by-products or residues, and
livestock waste nutrients; or
(D) a plant that is grown exclusively as a
fuel for the production of electricity.
[(2) Renewable energy.--The term ``renewable energy''
means electric energy generated from solar, wind,
biomass, landfill gas, ocean (including tidal, wave,
current, and thermal), geothermal, municipal solid
waste, or new hydroelectric generation capacity
achieved from increased efficiency or additions of new
capacity at an existing hydroelectric project.]
(2) Renewable energy.--The term ``renewable energy''
means electric energy, or thermal energy if resulting
from a thermal energy project placed in service after
December 31, 2014, generated from, or avoided by,
solar, wind, biomass, landfill gas, ocean (including
tidal, wave, current, and thermal), geothermal,
municipal solid waste (in accordance with subsection
(e)), qualified waste heat resource, or new
hydroelectric generation capacity achieved from
increased efficiency or additions of new capacity at an
existing hydroelectric project.
(3) Qualified waste heat resource.--The term
``qualified waste heat resource'' means--
(A) exhaust heat or flared gas from any
industrial process;
(B) waste gas or industrial tail gas that
would otherwise be flared, incinerated, or
vented;
(C) a pressure drop in any gas for an
industrial or commercial process; or
(D) such other forms of waste heat as the
Secretary determines appropriate.
(c) Calculation.--For purposes of determining compliance with
the requirement of this section, the amount of renewable energy
shall be doubled if--
(1) the renewable energy is produced and used on-site
at a Federal facility;
(2) the renewable energy is produced on Federal lands
and used at a Federal facility; or
(3) the renewable energy is produced on Indian land
as defined in title XXVI of the Energy Policy Act of
1992 (25 U.S.C. 3501 et seq.) and used at a Federal
facility.
(d) Report.--Not later than April 15, 2007, and every 2 years
thereafter, the Secretary shall provide a report to Congress on
the progress of the Federal Government in meeting the goals
established by this section.
(e) Paper Recycling.--
(1) Separate collection.--For purposes of this
section, any Federal agency may consider electric
energy generation purchased from a facility to be
renewable energy if the municipal solid waste used by
the facility to generate the electricity is--
(A) separately collected (within the meaning
of section 246.101(z) of title 40, Code of
Federal Regulations, as in effect on the date
of enactment of the North American Energy
Security and Infrastructure Act of 2015) from
paper that is commonly recycled; and
(B) processed in a way that keeps paper that
is commonly recycled segregated from non-
recyclable solid waste.
(2) Incidental inclusion.--Municipal solid waste used
to generate electric energy that meets the conditions
described in paragraph (1) shall be considered
renewable energy even if the municipal solid waste
contains incidental commonly recycled paper.
(3) No effect on existing processes.--Nothing in
paragraph (1) shall be interpreted to require a State
or political subdivision of a State, directly or
indirectly, to change the systems, processes, or
equipment it uses to collect, treat, dispose of, or
otherwise use municipal solid waste, within the meaning
of the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.), nor require a change to the regulations that
implement subtitle D of such Act (42 U.S.C. 6941 et
seq.).
* * * * * * *
Subtitle C--Hydroelectric
* * * * * * *
SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and
sold by a qualified hydroelectric facility during the incentive
period, the Secretary shall make, subject to the availability
of appropriations, incentive payments to the owner or operator
of such facility. The amount of such payment made to any such
owner or operator shall be as determined under subsection (e)
of this section. Payments under this section may only be made
upon receipt by the Secretary of an incentive payment
application which establishes that the applicant is eligible to
receive such payment and which satisfies such other
requirements as the Secretary deems necessary. Such application
shall be in such form, and shall be submitted at such time, as
the Secretary shall establish.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term
``qualified hydroelectric facility'' means a turbine or
other generating device owned or solely operated by a
non-Federal entity which generates hydroelectric energy
for sale and which is added to an existing dam or
conduit.
(2) Existing dam or conduit.--The term ``existing dam
or conduit'' means any dam or conduit the construction
of which was completed before the date of the enactment
of this section and which does not require any
construction or enlargement of impoundment or diversion
structures (other than repair or reconstruction) in
connection with the installation of a turbine or other
generating device.
(3) Conduit.--The term ``conduit'' has the same
meaning as when used in section 30(a)(2) of the Federal
Power Act (16 U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard
to the hydroelectric kilowatt capacity of the facility
concerned, without regard to whether the facility uses a dam
owned by a governmental or nongovernmental entity, and without
regard to whether the facility begins operation on or after the
date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this
section only for electric energy generated from a qualified
hydroelectric facility which begins operation during the period
of [10] 20 fiscal years beginning with the first full fiscal
year occurring after the date of enactment of this subtitle.
(d) Incentive Period.--A qualified hydroelectric facility may
receive payments under this section for a period of 10 fiscal
years (referred to in this section as the ``incentive
period''). Such period shall begin with the fiscal year in
which electric energy generated from the facility is first
eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary under
this section to the owner or operator of a qualified
hydroelectric facility shall be based on the number of
kilowatt hours of hydroelectric energy generated by the
facility during the incentive period. For any such
facility, the amount of such payment shall be 1.8 cents
per kilowatt hour (adjusted as provided in paragraph
(2)), subject to the availability of appropriations
under subsection (g), except that no facility may
receive more than $750,000 in 1 calendar year.
(2) Adjustments.--The amount of the payment made to
any person under this section as provided in paragraph
(1) shall be adjusted for inflation for each fiscal
year beginning after calendar year 2005 in the same
manner as provided in the provisions of section
29(d)(2)(B) of the Internal Revenue Code of 1986,
except that in applying such provisions the calendar
year 2005 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to any
qualified hydroelectric facility after the expiration of the
period of [20] 30 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle, and no payment may be made under this section to any
such facility after a payment has been made with respect to
such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary to carry out the purposes of
this section $10,000,000 for [each of the fiscal years 2006
through 2015] each of fiscal years 2016 through 2025.
SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary shall make incentive
payments to the owners or operators of hydroelectric facilities
at existing dams to be used to make capital improvements in the
facilities that are directly related to improving the
efficiency of such facilities by at least 3 percent.
(b) Limitations.--Incentive payments under this section shall
not exceed 10 percent of the costs of the capital improvement
concerned and not more than 1 payment may be made with respect
to improvements at a single facility. No payment in excess of
$750,000 may be made with respect to improvements at a single
facility.
(c) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section not more than
$10,000,000 for [each of the fiscal years 2006 through 2015]
each of fiscal years 2016 through 2025.
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle F--Fossil Energy
SEC. 961. FOSSIL ENERGY.
(a) In General.--The Secretary shall carry out research,
development, demonstration, and commercial application programs
in fossil energy, including activities under this subtitle,
with the goal of improving the efficiency, effectiveness, and
environmental performance of fossil energy production,
upgrading, conversion, and consumption. Such programs take into
consideration the following objectives:
(1) Increasing the energy conversion efficiency of
all forms of fossil energy through improved
technologies.
(2) Decreasing the cost of all fossil energy
production, generation, and delivery.
(3) Promoting diversity of energy supply.
(4) Decreasing the dependence of the United States on
foreign energy supplies.
(5) Improving United States energy security.
(6) Decreasing the environmental impact of energy-
related activities.
(7) Increasing the export of fossil energy-related
equipment, technology, and services from the United
States.
(8) Improving the conversion, use, and storage of
carbon dioxide produced from fossil fuels.
(b) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary to carry out fossil energy
research, development, demonstration, and commercial
application activities, including activities authorized under
this subtitle--
(1) $611,000,000 for fiscal year 2007;
(2) $626,000,000 for fiscal year 2008; and
(3) $641,000,000 for fiscal year 2009.
(c) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 962--
(A) $367,000,000 for fiscal year 2007;
(B) $376,000,000 for fiscal year 2008; and
(C) $394,000,000 for fiscal year 2009.
(2) For activities under section 964--
(A) $20,000,000 for fiscal year 2007;
(B) $25,000,000 for fiscal year 2008; and
(C) $30,000,000 for fiscal year 2009.
(3) For activities under section 966--
(A) $1,500,000 for fiscal year 2007; and
(B) $450,000 for each of fiscal years 2008
and 2009.
(4) For the Office of Arctic Energy under section
3197 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (42 U.S.C.
7144d) $25,000,000 for each of fiscal years 2007
through 2009.
(d) Extended Authorization.--There are authorized to be
appropriated to the Secretary for the Office of Arctic Energy
established under section 3197 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (42 U.S.C.
7144d) $25,000,000 for each of fiscal years 2010 through 2012.
(e) Limitations.--
(1) Uses.--None of the funds authorized under this
section may be used for Fossil Energy Environmental
Restoration or Import/Export Authorization.
(2) Institutions of higher education.--Of the funds
authorized under subsection (c)(2), not less than 20
percent of the funds appropriated for each fiscal year
shall be dedicated to research and development carried
out at institutions of higher education.
SEC. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.
(a) In General.--In addition to the programs authorized under
title IV, the Secretary shall conduct a program of technology
research, development, demonstration, and commercial
application for coal and power systems, including programs to
facilitate production and generation of coal-based power
through--
(1) innovations for existing plants (including
mercury removal);
(2) gasification systems;
(3) advanced combustion systems;
(4) turbines for synthesis gas derived from coal;
(5) carbon capture and sequestration research and
development;
(6) coal-derived chemicals and transportation fuels;
(7) liquid fuels derived from low rank coal water
slurry;
(8) solid fuels and feedstocks;
(9) advanced coal-related research;
(10) advanced separation technologies; and
(11) fuel cells for the operation of synthesis gas
derived from coal.
(b) Cost and Performance Goals.--
(1) In general.--In carrying out programs authorized
by this section, [during each of calendar years 2008,
2010, 2012, and 2016, and during each fiscal year
beginning after September 30, 2021,] during each fiscal
year beginning after September 30, 2016, the Secretary
shall identify cost and performance goals for coal-
based technologies that would allow for large-scale
demonstration and permit the continued cost-competitive
use of coal for commercial use, the production of
electricity, chemical feedstocks, and transportation
fuels.
(2) Administration.--In establishing the cost and
performance goals, the Secretary shall--
(A) consider activities and studies
undertaken as of the date of enactment of this
Act by industry in cooperation with the
Department in support of the identification of
the goals;
(B) consult with interested entities,
including--
(i) coal producers;
(ii) industries using coal;
(iii) organizations that promote coal
and advanced coal technologies;
(iv) environmental organizations;
(v) organizations representing
workers; and
(vi) organizations representing
consumers;
(C) not later than 120 days after the date of
enactment of this Act, publish in the Federal
Register proposed draft cost and performance
goals for public comments; and
(D) not later than 180 days after the date of
enactment of this Act and every 4 years
thereafter, submit to Congress a report
describing the final cost and performance goals
for the technologies that includes--
(i) a list of technical milestones;
and
(ii) an explanation of how programs
authorized in this section will not
duplicate the activities authorized
under the Clean Coal Power Initiative
authorized under title IV.
(c) Powder River Basin and Fort Union Lignite Coal Mercury
Removal.--
(1) In general.--In addition to the programs
authorized by subsection (a), the Secretary shall
establish a program to test and develop technologies to
control and remove mercury emissions from subbituminous
coal mined in the Powder River Basin, and Fort Union
lignite coals, that are used for the generation of
electricity.
(2) Efficacy of mercury removal technology.--In
carrying out the program under paragraph (1), the
Secretary shall examine the efficacy of mercury removal
technologies on coals described in that paragraph that
are blended with other types of coal.
(d) Fuel Cells.--
(1) In general.--The Secretary shall conduct a
program of research, development, demonstration, and
commercial application on fuel cells for low-cost,
high-efficiency, fuel-flexible, modular power systems.
(2) Demonstrations.--The demonstrations referred to
in paragraph (1) shall include solid oxide fuel cell
technology for commercial, residential, and
transportation applications, and distributed generation
systems, using improved manufacturing production and
processes.
* * * * * * *
----------
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Independence and Security Act of 2007''.
(b) Table of Contents.--The table of contents of this Act is
as follows:
* * * * * * *
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
* * * * * * *
Subtitle D--Industrial Energy Efficiency
* * * * * * *
[Sec. 452. Energy-intensive industries program.]
Sec. 452. Future of Industry program.
* * * * * * *
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
* * * * * * *
Subtitle C--Energy Efficiency in Federal Agencies
* * * * * * *
Sec. 530. Energy-efficient and energy-saving information technologies.
* * * * * * *
TITLE IV--ENERGY SAVINGS IN BUILDINGS AND INDUSTRY
* * * * * * *
Subtitle D--Industrial Energy Efficiency
* * * * * * *
SEC. 452. [ENERGY-INTENSIVE INDUSTRIES PROGRAM.] FUTURE OF INDUSTRY
PROGRAM.
(a) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) an energy-intensive industry;
(B) a national trade association representing
an energy-intensive industry; or
(C) a person acting on behalf of 1 or more
energy-intensive industries or sectors, as
determined by the Secretary.
(2) Energy-intensive industry.--The term ``energy-
intensive industry'' means an industry that uses
significant quantities of energy as part of its primary
economic activities, including--
(A) information technology, including data
centers containing electrical equipment used in
processing, storing, and transmitting digital
information;
(B) consumer product manufacturing;
(C) food processing;
(D) materials manufacturers, including--
(i) aluminum;
(ii) chemicals;
(iii) forest and paper products;
(iv) metal casting;
(v) glass;
(vi) petroleum refining;
(vii) mining; and
(viii) steel;
(E) other energy-intensive industries, as
determined by the Secretary.
(3) Energy service provider.--The term ``energy
service provider'' means any business providing
technology or services to improve the energy
efficiency, water efficiency, power factor, or load
management of a manufacturing site or other industrial
process in an energy-intensive industry, or any utility
operating under a utility energy service project.
[(3)] (4) Feedstock.--The term ``feedstock'' means
the raw material supplied for use in manufacturing,
chemical, and biological processes.
[(4)] (5) Partnership.--The term ``partnership''
means an energy efficiency partnership established
under subsection (c)(1)(A).
[(5)] (6) Program.--The term ``program'' means the
energy-intensive industries program established under
subsection (b).
(b) Establishment of Program.--The Secretary shall establish
a program under which the Secretary, in cooperation with
energy-intensive industries and national industry trade
associations representing the energy-intensive industries,
shall support, research, develop, and promote the use of new
materials processes, technologies, and techniques to optimize
energy efficiency and the economic competitiveness of the
United States' industrial and commercial sectors.
(c) Partnerships.--
(1) In general.--As part of the program, the
Secretary shall establish energy efficiency
partnerships between the Secretary and eligible
entities to conduct research on, develop, and
demonstrate new processes, technologies, and operating
practices and techniques to significantly improve the
energy efficiency of equipment and processes used by
energy-intensive industries, including the conduct of
activities to--
(A) increase the energy efficiency of
industrial processes and facilities;
(B) research, develop, and demonstrate
advanced technologies capable of energy
intensity reductions and increased
environmental performance; and
(C) promote the use of the processes,
technologies, and techniques described in
subparagraphs (A) and (B).
(2) Eligible activities.--Partnership activities
eligible for funding under this subsection include--
(A) feedstock and recycling research,
development, and demonstration activities to
identify and promote--
(i) opportunities for meeting
industry feedstock requirements with
more energy efficient and flexible
sources of feedstock or energy supply;
(ii) strategies to develop and deploy
technologies that improve the quality
and quantity of feedstocks recovered
from process and waste streams; and
(iii) other methods using recycling,
reuse, and improved industrial
materials;
(B) research to develop and demonstrate
technologies and processes that utilize
alternative energy sources to supply heat,
power, and new feedstocks for energy-intensive
industries;
(C) research to achieve energy efficiency in
steam, power, control system, and process heat
technologies, and in other manufacturing
processes; and
(D) industrial and commercial energy
efficiency and sustainability assessments to--
(i) assist individual industrial and
commercial sectors in developing tools,
techniques, and methodologies to
assess--
(I) the unique processes and
facilities of the sectors;
(II) the energy utilization
requirements of the sectors;
and
(III) the application of new,
more energy efficient
technologies; and
(ii) conduct energy savings
assessments;
(E) the incorporation of technologies and
innovations that would significantly improve
the energy efficiency and utilization of
energy-intensive commercial applications; and
(F) any other activities that the Secretary
determines to be appropriate.
(3) Proposals.--
(A) In general.--To be eligible for funding
under this subsection, a partnership shall
submit to the Secretary a proposal that
describes the proposed research, development,
or demonstration activity to be conducted by
the partnership.
(B) Review.--After reviewing the scientific,
technical, and commercial merit of a proposals
submitted under subparagraph (A), the Secretary
shall approve or disapprove the proposal.
(C) Competitive awards.--The provision of
funding under this subsection shall be on a
competitive basis.
(4) Cost-sharing requirement.--In carrying out this
section, the Secretary shall require cost sharing in
accordance with section 988 of the Energy Policy Act of
2005 (42 U.S.C. 16352).
(d) Grants.--The Secretary may award competitive grants for
innovative technology research, development and demonstrations
to universities, individual inventors, and small companies,
based on energy savings potential, commercial viability, and
technical merit.
(e) Institution of Higher Education-Based Industrial Research
and Assessment Centers.--[The Secretary]
(1) In general._The Secretary shall provide funding
to institution of higher education-based industrial
research and assessment centers, whose purpose shall
be--
[(1)] (A) to identify opportunities for
optimizing energy efficiency and environmental
performance, including assessments of
sustainable manufacturing goals and the
implementation of information technology
advancements for supply chain analysis,
logistics, system monitoring, industrial and
manufacturing processes, and other purposes;
[(2)] (B) to promote applications of emerging
concepts and technologies in small- and medium-
sized manufacturers;
[(3)] (C) to promote research and development
for the use of alternative energy sources to
supply heat, power, and new feedstocks for
energy-intensive industries;
[(4)] (D) to coordinate with appropriate
Federal and State research offices, and provide
a clearinghouse for industrial process and
energy efficiency technical assistance
resources; and
[(5)] (E) to coordinate with State-accredited
technical training centers and community
colleges, while ensuring appropriate services
to all regions of the United States.
(2) Coordination.--To increase the value and
capabilities of the industrial research and assessment
centers, the centers shall--
(A) coordinate with Manufacturing Extension
Partnership Centers of the National Institute
of Standards and Technology;
(B) coordinate with the Building Technologies
Office of the Department of Energy to provide
building assessment services to manufacturers;
(C) 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; and
(D) 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.
(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) 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).
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to the Secretary to carry out this
section--
(A) $184,000,000 for fiscal year 2008;
(B) $190,000,000 for fiscal year 2009;
(C) $196,000,000 for fiscal year 2010;
(D) $202,000,000 for fiscal year 2011;
(E) $208,000,000 for fiscal year 2012; and
(F) such sums as are necessary for fiscal
year 2013 and each fiscal year thereafter.
(2) Partnership activities.--Of the amounts made
available under paragraph (1), not less than 50 percent
shall be used to pay the Federal share of partnership
activities under subsection (c).
(3) Coordination and nonduplication.--The Secretary
shall coordinate efforts under this section with other
programs of the Department and other Federal agencies
to avoid duplication of effort.
SEC. 453. ENERGY EFFICIENCY FOR DATA CENTER BUILDINGS.
(a) Definitions In this section:
(1) Data center.--The term ``data center'' means any
facility that primarily contains electronic equipment
used to process, store, and transmit digital
information, which may be--
(A) a free-standing structure; or
(B) a facility within a larger structure,
that uses environmental control equipment to
maintain the proper conditions for the
operation of electronic equipment.
(2) Data center operator.--The term ``data center
operator'' means any person or government entity that
builds or operates a data center or purchases data
center services, equipment, and facilities.
(b) Voluntary National Information Program.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary and the
Administrator of the Environmental Protection Agency
shall, after consulting with information technology
industry and other interested parties, initiate a
voluntary national information program for those types
of data centers and data center equipment and
facilities that are widely used and for which there is
a potential for significant data center energy savings
as a result of the program.
(2) Requirements.--The program described in paragraph
(1) shall--
(A) address data center efficiency
holistically, reflecting the total energy
consumption of data centers as whole systems,
including both equipment and facilities;
(B) consider prior work and studies
undertaken in this area, including by the
Environmental Protection Agency and the
Department of Energy;
(C) consistent with the objectives described
in paragraph (1), determine the type of data
center and data center equipment and facilities
to be covered under the program;
(D) produce specifications, measurements,
best practices, and benchmarks that will enable
data center operators to make more informed
decisions about the energy efficiency and costs
of data centers, and that take into account--
(i) the performance and use of
servers, data storage devices, and
other information technology equipment;
(ii) the efficiency of heating,
ventilation, and air conditioning,
cooling, and power conditioning
systems, provided that no modification
shall be required of a standard then in
effect under the Energy Policy and
Conservation Act (42 U.S.C. 6201 et
seq.) for any covered heating,
ventilation, air-conditioning, cooling
or power-conditioning product;
(iii) energy savings from the
adoption of software and data
management techniques; and
(iv) other factors [determined by the
organization] proposed by the
stakeholders described in subsection
(c);
(E) allow for creation of separate
specifications, measurements, and benchmarks
based on data center size and function, as well
as other appropriate characteristics;
(F) advance the design and implementation of
efficiency technologies to the maximum extent
economically practical;
(G) provide to data center operators in the
private sector and the Federal Government
information about best practices and purchasing
decisions that reduce the energy consumption of
data centers; and
(H) publish the information described in
subparagraph (G), which may be disseminated
through catalogs, trade publications, the
Internet, or other mechanisms, that will allow
data center operators to assess the energy
consumption and potential cost savings of
alternative data centers and data center
equipment and facilities.
[(3) Procedures.--The program described in paragraph
(1) shall be developed in consultation with and
coordinated by the organization described in subsection
(c) according to commonly accepted procedures for the
development of specifications, measurements, and
benchmarks.]
[(c) Data Center Efficiency Organization.--
[(1) In general.--After the establishment of the
program described in subsection (b), the Secretary and
the Administrator shall jointly designate an
information technology industry organization to consult
with and to coordinate the program.
[(2) Requirements.--The organization designated under
paragraph (1), whether preexisting or formed
specifically for the purposes of subsection (b),
shall--
[(A) consist of interested parties that have
expertise in energy efficiency and in the
development, operation, and functionality of
computer data centers, information technology
equipment, and software, as well as
representatives of hardware manufacturers, data
center operators, and facility managers;
[(B) obtain and address input from Department
of Energy National Laboratories or any college,
university, research institution, industry
association, company, or public interest group
with applicable expertise in any of the areas
listed in paragraph (1);
[(C) follow commonly accepted procedures for
the development of specifications and
accredited standards development processes;
[(D) have a mission to develop and promote
energy efficiency for data centers and
information technology; and
[(E) have the primary responsibility to
consult in the development and publishing of
the information, measurements, and benchmarks
described in subsection (b) and transmission of
the information to the Secretary and the
Administrator for consideration under
subsection (d).
[(d) Measurements and Specifications.--
[(1) In general.--The Secretary and the Administrator
shall consider the specifications, measurements, and
benchmarks described in subsection (b) for use by the
Federal Energy Management Program, the Energy Star
Program, and other efficiency programs of the
Department of Energy and Environmental Protection
Agency, respectively.
[(2) Rejections.--If the Secretary or the
Administrator rejects 1 or more specifications,
measurements, or benchmarks described in subsection
(b), the rejection shall be made consistent with
section 12(d) of the National Technology Transfer and
Advancement Act of 1995 (15 U.S.C. 272 note; Public Law
104-113).
[(3) Determination of impracticability.--A
determination that a specification, measurement, or
benchmark described in subsection (b) is impractical
may include consideration of the maximum efficiency
that is technologically feasible and economically
justified.
[(e) Monitoring.--The Secretary and the Administrator shall--
[(1) monitor and evaluate the efforts to develop the
program described in subsection (b); and
[(2) not later than 3 years after the date of
enactment of this Act, make a determination as to
whether the program is consistent with the objectives
of subsection (b).
[(f) Alternative System.--If the Secretary and the
Administrator make a determination under subsection (e) that a
voluntary national information program for data centers
consistent with the objectives of subsection (b) has not been
developed, the Secretary and the Administrator shall, after
consultation with the National Institute of Standards and
Technology and not later than 2 years after the determination,
develop and implement the program under subsection (b).
[(g) Protection of Proprietary Information.--The Secretary,
the Administrator, or the data center efficiency organization
shall not disclose any proprietary information or trade secrets
provided by any individual or company for the purposes of
carrying out this section or the program established under this
section.]
(c) Stakeholder Involvement.--The Secretary and the
Administrator shall carry out subsection (b) in collaboration
with the information technology industry and other key
stakeholders, with the goal of producing results that
accurately reflect the most relevant and useful information
available. In such collaboration, the Secretary and the
Administrator shall pay particular attention to organizations
that--
(1) have members with expertise in energy efficiency
and in the development, operation, and functionality of
data centers, information technology equipment, and
software, such as representatives of hardware
manufacturers, data center operators, and facility
managers;
(2) obtain and address input from Department of
Energy National Laboratories or any college,
university, research institution, industry association,
company, or public interest group with applicable
expertise;
(3) follow--
(A) commonly accepted procedures for the
development of specifications; and
(B) accredited standards development
processes; and
(4) have a mission to promote energy efficiency for
data centers and information technology.
(d) Measurements and Specifications.--The Secretary and the
Administrator shall consider and assess the adequacy of the
specifications, measurements, best practices, and benchmarks
described in subsection (b) for use by the Federal Energy
Management Program, the Energy Star Program, and other
efficiency programs of the Department of Energy or the
Environmental Protection Agency.
(e) Study.--The Secretary, in collaboration with the
Administrator, shall, not later than 18 months after the date
of enactment of the North American Energy Security and
Infrastructure Act of 2015, 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--
(1) a comparison and gap analysis of the estimates
and projections contained in the original report with
new data regarding the period from 2008 through 2015;
(2) an analysis considering the impact of information
technologies, including virtualization and cloud
computing, in the public and private sectors;
(3) an evaluation of the impact of the combination of
cloud platforms, mobile devices, social media, and big
data on data center energy usage;
(4) an evaluation of water usage in data centers and
recommendations for reductions in such water usage; and
(5) updated projections and recommendations for best
practices through fiscal year 2020.
(f) Data Center Energy Practitioner Program.--The Secretary,
in collaboration with key stakeholders and the Director of 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 Federal data centers. Each Federal
agency shall consider having the data centers of the agency
evaluated every 4 years, in accordance with section 543(f) of
the National Energy Conservation Policy Act (42 U.S.C. 8253),
by energy practitioners certified pursuant to such program.
(g) Open Data Initiative.--The Secretary, in collaboration
with key stakeholders and the Director of the Office of
Management and Budget, shall establish an open data initiative
for Federal data center energy usage data, with the purpose of
making such data available and accessible in a manner that
encourages further data center innovation, optimization, and
consolidation. In establishing the initiative, the Secretary
shall consider the use of the online Data Center Maturity
Model.
(h) International Specifications and Metrics.--The Secretary,
in collaboration with key stakeholders, shall actively
participate in efforts to harmonize global specifications and
metrics for data center energy and water efficiency.
(i) Data Center Utilization Metric.--The Secretary, in
collaboration with key stakeholders, shall facilitate the
development of an efficiency metric that measures the energy
efficiency of a data center (including equipment and
facilities).
(j) Protection of Proprietary Information.--The Secretary and
the Administrator shall not disclose any proprietary
information or trade secrets provided by any individual or
company for the purposes of carrying out this section or the
programs and initiatives established under this section.
* * * * * * *
TITLE V--ENERGY SAVINGS IN GOVERNMENT AND PUBLIC INSTITUTIONS
* * * * * * *
Subtitle C--Energy Efficiency in Federal Agencies
* * * * * * *
SEC. 530. ENERGY-EFFICIENT AND ENERGY-SAVING INFORMATION TECHNOLOGIES.
(a) Definitions.--In this section:
(1) Director.--The term ``Director'' means the
Director of the Office of Management and Budget.
(2) Information technology.--The term ``information
technology'' has the meaning given that term in section
11101 of title 40, United States Code.
(b) Development of Implementation Strategy.--Not later than 1
year after the date of enactment of this section, each Federal
agency shall coordinate with the Director, the Secretary, and
the Administrator of the Environmental Protection Agency to
develop an implementation strategy (that includes 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, taking
into consideration the performance goals established under
subsection (d).
(c) Administration.--In developing an implementation strategy
under subsection (b), each Federal agency shall consider--
(1) advanced metering infrastructure;
(2) energy-efficient data center strategies and
methods of increasing asset and infrastructure
utilization;
(3) advanced power management tools;
(4) building information modeling, including building
energy management;
(5) secure telework and travel substitution tools;
and
(6) mechanisms to ensure that the agency realizes the
energy cost savings brought about through increased
efficiency and utilization.
(d) Performance Goals.--
(1) In general.--Not later than 180 days after the
date of enactment of this section, 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.
(2) Best practices.--The Chief Information Officers
Council established under section 3603 of title 44,
United States Code, shall recommend best practices for
the attainment of the performance goals, which shall
include Federal agency consideration of, to the extent
applicable by law, the use of--
(A) energy savings performance contracting;
and
(B) utility energy services contracting.
(e) Reports.--
(1) Agency reports.--Each Federal agency shall
include in the report of the agency under section 527 a
description of the efforts and results of the agency
under this section.
(2) OMB government efficiency reports and
scorecards.--Effective beginning not later than October
1, 2017, the Director shall include in the annual
report and scorecard of the Director required under
section 528 a description of the efforts and results of
Federal agencies under this section.
----------
NATIONAL ENERGY CONSERVATION POLICY ACT
SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``National
Energy Conservation Policy Act''.
(b) Table of Contents.--
* * * * * * *
TITLE II--RESIDENTIAL ENERGY CONSERVATION
* * * * * * *
Part 4--Miscellaneous
* * * * * * *
[Sec. 253. Residential energy efficiency standards study.
[Sec. 254. Weatherization study.]
* * * * * * *
Part 6--Residential Energy Efficiency Rating Guidelines
* * * * * * *
[Sec. 273. Report.]
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVES
* * * * * * *
part 3--federal energy management
* * * * * * *
[Sec. 550. Survey of energy saving potential.]
* * * * * * *
[Part 4--Federal Photovoltaic Utilization
[Sec. 561. Short title of part.
[Sec. 562. Definitions.
[Sec. 563. Photovoltaic energy program.
[Sec. 564. Purpose of program.
[Sec. 565. Acquisition of systems.
[Sec. 566. Administration.
[Sec. 567. System evaluation and purchase program.
[Sec. 568. Advisory committee.
[Sec. 569. Authorization of appropriations.
[Sec. 570. Use of photovoltaic energy in public buildings.]
* * * * * * *
[Part 5--Peak Demand Reduction
[Sec. 571. National Action Plan for Demand Response.]
* * * * * * *
TITLE II--RESIDENTIAL ENERGY CONSERVATION
* * * * * * *
PART 4--MISCELLANEOUS
* * * * * * *
[SEC. 253. RESIDENTIAL ENERGY EFFICIENCY STANDARDS STUDY.
[(a) General Authority.--The Secretary of Housing and Urban
Development (hereinafter in this section referred to as the
``Secretary'') shall, in coordination with the Secretary of
Agriculture, the Secretary of the Treasury, the Secretary of
Veterans Affairs, the Secretary of Energy, and such other
representatives of Federal, State, and local governments as the
Secretary shall designate, conduct a study, utilizing the
services of the National Institute of Building Sciences
pursuant to appropriate contractual arrangements, for the
purpose of determining the need for, the feasibility of, and
the problems of requiring, by mandatory Federal action, that
all residential dwelling units meet applicable energy efficient
standards. The subjects to be examined shall include, but not
be limited to, mandatory notification to purchasers, and
policies to prohibit exchange or sale, of properties which do
not conform to such standards.
[(b) Specific Factors.--In conducting such study, the
Secretary shall consider at least the following factors--
[(1) the extent to which such requirement would
protect a prospective purchaser from the uncertainty of
not knowing the energy efficiency of the property he
proposes to purchase;
[(2) the extent to which such requirement would
contribute to the Nation's energy conservation goals;
[(3) the extent to which such a requirement would
affect the real estate, home building, and mortgage
banking industries;
[(4) the sanctions which might be necessary to make
such a requirement effective and the administrative
impediments there might be to enforcement of such
sanctions;
[(5) the possible impact on sellers and purchasers as
a result of the implementation of mandatory Federal
actions, taking into account the experience of the
Federal Government in imposing mandatory requirements
concerning the purchase and sale of real property as
occurred under the Real Estate Settlement Procedures
Act of 1974 and the Federal Disaster Protection Act of
1973;
[(6) an analysis of the effect of such a requirement
on the economy as a whole and on the Nation's security
as compared to the impact on the credit and housing
markets caused by such a requirement;
[(7) the effect of such a requirement on availability
of credit in the housing industry;
[(8) the extent to which the imposition of mandatory
Federal requirements would temporarily reduce the
number of residential dwellings available for sale and
the resulting effect of such mandatory actions on the
price of those remaining dwelling units eligible for
sale; and
[(9) the possible uncertainty, during the period of
developing the standards, as to what standards might be
imposed and any resulting effect on major housing
rehabilitation efforts and voluntary efforts for energy
conservation.
[(c) Comments and Findings by Secretary of Energy.--The
Secretary shall incorporate into such study comments by the
Secretary of Energy on the effects on the economy as a whole
and on the Nation's security which may result from the
requirement described in subsection (a) as compared to the
impact on the credit and housing markets likely to be caused by
such a requirement. In addition, the Secretary shall
incorporate into such study the following findings by the
Secretary of Energy:
[(1) the savings in energy costs resulting from the
requirement described in subsection (a) throughout the
estimated remaining useful life of the existing
residential buildings to which such requirement would
apply; and
[(2) the total cost per barrel of oil equivalent, in
obtaining the energy savings likely to result from such
requirement, computed for each class of existing
residential buildings to which such requirement would
apply.
[(d) Report Date.--The Secretary shall report, no later than
one year after the date of enactment of this section, to both
Houses of the Congress with regard to the findings made as a
result of such study along with any recommendations for
legislative proposals which the Secretary determines should be
enacted with respect to the subject of such study.
[SEC. 254. WEATHERIZATION STUDY.
[The President shall conduct a study which shall monitor the
weatherization activities authorized by this Act and amendments
made thereby and those weatherization activities undertaken,
independently of this Act and such amendments. The President
shall report to the Congress within one year from the date of
enactment of this Act, and annually thereafter, concerning--
[(1) the extent of progress being made through
weatherization activities toward the achievement of
national energy conservation goals;
[(2) adequacy and costs of materials necessary for
weatherization activities; and
[(3) the need for and desirability of modifying
weatherization activities authorized by this Act, and
amendments made thereby and of extending such
activities to a broader range of income groups than are
being assisted under this Act and such amendments.]
* * * * * * *
PART 6--RESIDENTIAL ENERGY EFFICIENCY RATING GUIDELINES
* * * * * * *
[SEC. 273. REPORT.
[Not later than 3 years after the date of the enactment of
the Energy Policy Act of 1992, the Secretary shall transmit to
the President and the Congress a final report containing--
[(1) a description of actions taken by the Secretary
and other Federal agencies to implement this part;
[(2) a description of the action taken by States,
local governments, and other organizations to implement
the voluntary guidelines issued under section 271 and
any problems encountered in implementing such
guidelines; and
[(3) recommendations on the feasibility of requiring,
as a prerequisite to receiving federally assisted,
guaranteed, or insured mortgages, the achievement of a
minimum energy efficiency rating.]
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVE
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.
[(a) Energy Performance Requirement for Federal Buildings.--
(1) Subject to paragraph (2), each agency shall apply energy
conservation measures to, and shall improve the design for the
construction of, the Federal buildings of the agency (including
each industrial or laboratory facility) so that the energy
consumption per gross square foot of the Federal buildings of
the agency in fiscal years 2006 through 2015 is reduced, as
compared with the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal year 2003, by the
percentage specified in the following table:
[Fiscal Year Percentage Reduction
2006...................................................... 2
2007...................................................... 4
2008...................................................... 9
2009...................................................... 12
2010...................................................... 15
2011...................................................... 18
2012...................................................... 21
2013...................................................... 24
2014...................................................... 27
2015...................................................... 30.
[(2) An agency may exclude from the requirements of paragraph
(1) any building, and the associated energy consumption and
gross square footage, in which energy intensive activities are
carried out. Each agency shall identify and list in each report
made under section 548(a) the buildings designated by it for
such exclusion.
[(3) Not later than December 31, 2014, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2016 through 2025.]
(a) Energy Performance Requirement for Federal Buildings.--
(1) 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:
Fiscal Year Percentage 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.
(b) Energy Management Requirement for Federal Agencies.--(1)
Not later than January 1, 2005, each agency shall, to the
maximum extent practicable, install in Federal buildings owned
by the United States all energy and water conservation measures
with payback periods of less than 10 years, as determined by
using the methods and procedures developed pursuant to section
544.
(2) The Secretary may waive the requirements of this
subsection for any agency for such periods as the Secretary may
determine if the Secretary finds that the agency is taking all
practicable steps to meet the requirements and that the
requirements of this subsection will pose an unacceptable
burden upon the agency. If the Secretary waives the
requirements of this subsection, the Secretary shall, as part
of the report required under section 548(b), notify the
Congress in writing with an explanation and a justification of
the reasons for such waiver.
(3) This subsection shall not apply to an agency's facilities
that generate or transmit electric energy or to the uranium
enrichment facilities operated by the Department of Energy.
(4) An agency may participate in the Environmental Protection
Agency's ``Green Lights'' program for purposes of receiving
technical assistance in complying with the requirements of this
section.
(c) Exclusions.--(1)(A) An agency may exclude, from the
energy performance requirement for a fiscal year established
under subsection (a) and the energy management requirement
established under subsection (b), any Federal building or
collection of Federal buildings, if the head of the agency
finds that--
(i) compliance with those requirements would be
impracticable;
(ii) the agency has completed and submitted all
federally required energy management reports;
(iii) the agency has achieved compliance with the
energy efficiency requirements of this Act, the Energy
Policy Act of 1992, Executive orders, and other Federal
law; and
(iv) the agency has implemented all practicable, life
cycle cost-effective projects with respect to the
Federal building or collection of Federal buildings to
be excluded.
(B) A finding of impracticability under subparagraph (A)(i)
shall be based on--
(i) the energy intensiveness of activities carried
out in the Federal building or collection of Federal
buildings; or
(ii) the fact that the Federal building or collection
of Federal buildings is used in the performance of a
national security function.
(2) Each agency shall identify and list, in each report made
under section 548(a), the Federal buildings designated by it
for such exclusion. The Secretary shall review such findings
for consistency with the standards for exclusion set forth in
paragraph (1), and may within 90 days after receipt of the
findings, reverse the exclusion. In the case of any such
reversal, the agency shall comply with the requirements of
subsections (a) and (b)(1) for the building concerned.
(3) Not later than 180 days after the date of enactment of
this paragraph, the Secretary shall issue guidelines that
establish criteria for exclusions under paragraph (1).
(d) Implementation Steps.--The Secretary shall consult with
the Secretary of Defense and the Administrator of General
Services in developing guidelines for the implementation of
this part. To meet the requirements of this section, each
agency shall--
(1) prepare and submit to the Secretary, not later
than December 31, 1993, a plan describing how the
agency intends to meet such requirements, including how
it will--
(A) designate personnel primarily responsible
for achieving such requirements;
(B) identify high priority projects through
calculation of payback periods;
(C) take maximum advantage of contracts
authorized under title VIII of this Act, of
financial incentives and other services
provided by utilities for efficiency
investment, and of other forms of financing to
reduce the direct costs to the Government; and
(D) otherwise implement this part;
(2) perform energy surveys of its Federal buildings
to the extent necessary and update such surveys as
needed[, incorporating any relevant information
obtained from the survey conducted pursuant to section
550];
(3) using such surveys, determine the cost and
payback period of energy and water conservation
measures likely to achieve the requirements of this
section;
(4) install energy and water conservation measures
that will achieve the requirements of this section
through the methods and procedures established pursuant
to section 544; and
(5) ensure that the operation and maintenance
procedures applied under this section are continued.
(e) Metering of Energy Use.--
(1) Deadline.--By October 1, 2012, in accordance with
guidelines established by the Secretary under paragraph
(2), all Federal buildings shall, for the purposes of
efficient use of energy and reduction in the cost of
electricity used in such buildings, be metered. Each
agency shall use, to the maximum extent practicable,
advanced meters or advanced metering devices that
provide data at least daily and that measure at least
hourly consumption of electricity in the Federal
buildings of the agency. Not later than October 1,
2016, each agency shall provide for equivalent metering
of natural gas and steam, in accordance with guidelines
established by the Secretary under paragraph (2). Such
data shall be incorporated into existing Federal energy
tracking systems and made available to Federal facility
managers.
(2) Guidelines.--
(A) In general.--Not later than 180 days
after the date of enactment of this subsection,
the Secretary, in consultation with the
Department of Defense, the General Services
Administration, representatives from the
metering industry, utility industry, energy
services industry, energy efficiency industry,
energy efficiency advocacy organizations,
national laboratories, universities, and
Federal facility managers, shall establish
guidelines for agencies to carry out paragraph
(1).
(B) Requirements for guidelines.--The
guidelines shall--
(i) take into consideration--
(I) the cost of metering and
the reduced cost of operation
and maintenance expected to
result from metering;
(II) the extent to which
metering is expected to result
in increased potential for
energy management, increased
potential for energy savings
and energy efficiency
improvement, and cost and
energy savings due to utility
contract aggregation; and
(III) the measurement and
verification protocols of the
Department of Energy;
(ii) include recommendations
concerning the amount of funds and the
number of trained personnel necessary
to gather and use the metering
information to track and reduce energy
use;
(iii) establish priorities for types
and locations of buildings to be
metered based on cost-effectiveness and
a schedule of one or more dates, not
later than 1 year after the date of
issuance of the guidelines, on which
the requirements specified in paragraph
(1) shall take effect; and
(iv) establish exclusions from the
requirements specified in paragraph (1)
based on the de minimis quantity of
energy use of a Federal building,
industrial process, or structure.
(3) Plan.--Not later than 180 days after the date on
which guidelines are established under paragraph (2),
in a report submitted by the agency under section
548(a), each agency shall submit to the Secretary a
plan describing the manner in which the agency will
implement the requirements of paragraph (1),
including--
(A) how the agency will designate personnel
primarily responsible for achieving the
requirements; and
(B) a demonstration by the agency, complete
with documentation, of any finding that
advanced meters or advanced metering devices
(as those terms are used in paragraph (1)), are
not practicable.
(4) Best practices report.--
(A) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary of Energy, in consultation with
the Secretary of Defense and the Administrator
of General Services, shall develop, and issue a
report on, best practices for the use of
advanced metering of energy use in Federal
facilities, buildings, and equipment by Federal
agencies.
(B) Components.--The report shall include, at
a minimum--
(i) summaries and analysis of the
reports by agencies under paragraph
(3);
(ii) recommendations on standard
requirements or guidelines for
automated energy management systems,
including--
(I) potential common
communications standards to
allow data sharing and
reporting;
(II) means of facilitating
continuous commissioning of
buildings and evidence-based
maintenance of buildings and
building systems; and
(III) standards for
sufficient levels of security
and protection against cyber
threats to ensure systems
cannot be controlled by
unauthorized persons; and
(iii) an analysis of--
(I) the types of advanced
metering and monitoring systems
being piloted, tested, or
installed in Federal buildings;
and
(II) existing techniques used
within the private sector or
other non-Federal government
buildings.
(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
(1) Definitions.--In this subsection:
(A) Commissioning.--The term
``commissioning'', with respect to a facility,
means a systematic process--
(i) of ensuring, using appropriate
verification and documentation, during
the period beginning on the initial day
of the design phase of the facility and
ending not earlier than 1 year after
the date of completion of construction
of the facility, that all facility
systems perform interactively in
accordance with--
(I) the design documentation
and intent of the facility; and
(II) the operational needs of
the owner of the facility,
including preparation of
operation personnel; and
(ii) the primary goal of which is to
ensure fully functional systems that
can be properly operated and maintained
during the useful life of the facility.
(B) Energy manager.--
(i) In general.--The term ``energy
manager'', with respect to a facility,
means the individual who is responsible
for--
(I) ensuring compliance with
this subsection by the
facility; and
(II) reducing energy use at
the facility.
(ii) Inclusions.--The term ``energy
manager'' may include--
(I) a contractor of a
facility;
(II) a part-time employee of
a facility; and
(III) an individual who is
responsible for multiple
facilities.
(C) Facility.--
(i) In general.--The term
``facility'' means any building,
installation, structure, or other
property (including any applicable
fixtures) owned or operated by, or
constructed or manufactured and leased
to, the Federal Government.
(ii) Inclusions.--The term
``facility'' includes--
(I) a group of facilities at
a single location or multiple
locations managed as an
integrated operation; and
(II) contractor-operated
facilities owned by the Federal
Government.
(iii) Exclusions.--The term
``facility'' does not include any land
or site for which the cost of utilities
is not paid by the Federal Government.
(D) Life cycle cost-effective.--The term
``life cycle cost-effective'', with respect to
a measure, means a measure, the estimated
savings of which exceed the estimated costs
over the lifespan of the measure, as determined
in accordance with section 544.
(E) Ongoing commissioning.--The term
``ongoing commissioning'' means an ongoing
process of commissioning using monitored data,
the primary goal of which is to ensure
continuous optimum performance of a facility,
in accordance with design or operating needs,
over the useful life of the facility, while
meeting facility occupancy requirements.
[(E)] (F) Payback period.--
(i) In general.--Subject to clause
(ii), the term ``payback period'', with
respect to a measure, means a value
equal to the quotient obtained by
dividing--
(I) the estimated initial
implementation cost of the
measure (other than financing
costs); by
(II) the annual cost savings
resulting from the measure,
including--
(aa) net savings in
estimated energy and
water costs; and
(bb) operations,
maintenance, repair,
replacement, and other
direct costs.
(ii) Modifications and exceptions.--
The Secretary, in guidelines issued
pursuant to paragraph (6), may make
such modifications and provide such
exceptions to the calculation of the
payback period of a measure as the
Secretary determines to be appropriate
to achieve the purposes of this Act.
[(F)] (G) Recommissioning.--The term
``recommissioning'' means a process--
(i) of commissioning a facility or
system beyond the project development
and warranty phases of the facility or
system; and
(ii) the primary goal of which is to
ensure optimum performance of a
facility, in accordance with design or
current operating needs, over the
useful life of the facility, while
meeting building occupancy
requirements.
[(G)] (H) Retrocommissioning.--The term
``retrocommissioning'' means a process of
commissioning a facility or system that was not
commissioned at the time of construction of the
facility or system.
(2) Facility energy managers.--
(A) In general.--Each Federal agency shall
designate an energy manager responsible for
implementing this subsection and reducing
energy use at each facility that meets criteria
under subparagraph (B).
(B) Covered facilities.--The Secretary shall
develop criteria, after consultation with
affected agencies, energy efficiency advocates,
and energy and utility service providers, that
cover, at a minimum, Federal facilities,
including central utility plants and
distribution systems and other energy intensive
operations, that constitute at least 75 percent
of facility energy use at each agency.
(C) Energy management system.--An energy
manager designated 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''.
[(3) Energy and water evaluations.--
[(A) Evaluations.--Effective beginning on the
date that is 180 days after the date of
enactment of this subsection and annually
thereafter, energy managers shall complete, for
each calendar year, a comprehensive energy and
water evaluation for approximately 25 percent
of the facilities of each agency that meet the
criteria under paragraph (2)(B) in a manner
that ensures that an evaluation of each such
facility is completed at least once every 4
years.
[(B) Recommissioning and
retrocommissioning.--As part of the evaluation
under subparagraph (A), the energy manager
shall identify and assess recommissioning
measures (or, if the facility has never been
commissioned, retrocommissioning measures) for
each such facility.
[(4) Implementation of identified energy and water
efficiency measures.--Not later than 2 years after the
completion of each evaluation under paragraph (3), each
energy manager may--
[(A) implement any energy- or water-saving
measure that the Federal agency identified in
the evaluation conducted under paragraph (3)
that is life cycle cost-effective; and
[(B) bundle individual measures of varying
paybacks together into combined projects.]
(3) Energy and water evaluations and commissioning.--
(A) Evaluations.--Except as provided in
subparagraph (B), effective beginning on the
date that is 180 days after the date of
enactment of the North American Energy Security
and Infrastructure Act of 2015, 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 that energy manager's
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 or 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,
recommissioning, or retrocommissioning;
(iii) has not had a major change in
function or use since the previous
evaluation and commissioning,
recommissioning, or retrocommissioning;
(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,
recommissioning, or
retrocommissioning
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.--Each energy
manager, as part of the certification system
under paragraph (7) and using guidelines
developed by the Secretary, shall provide an
explanation regarding any life-cycle cost-
effective measures described in subparagraph
(A)(i) that have not been implemented.
(5) Follow-up on implemented measures.--For each
measure implemented under paragraph (4), each energy
manager shall ensure that--
(A) equipment, including building and
equipment controls, is fully commissioned at
acceptance to be operating at design
specifications;
(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in
place at acceptance and is followed;
(C) equipment and system performance is
measured during its entire life to ensure
proper operations, maintenance, and repair; and
(D) energy and water savings are measured and
verified.
(6) Guidelines.--
(A) In general.--The Secretary shall issue
guidelines and necessary criteria that each
Federal agency shall follow for implementation
of--
(i) paragraphs (2) and (3) not later
than 180 days after the date of
enactment of this subsection; and
(ii) paragraphs (4) and (5) not later
than 1 year after the date of enactment
of this subsection.
(B) Relationship to funding source.--The
guidelines issued by the Secretary under
subparagraph (A) shall be appropriate and
uniform for measures funded with each type of
funding made available under paragraph (10),
but may distinguish between different types of
measures project size, and other criteria the
Secretary determines are relevant.
(7) Web-based certification.--
(A) In general.--For each facility that meets
the criteria established by the Secretary under
paragraph (2)(B), the energy manager shall use
the web-based tracking system under
subparagraph (B)--
(i) to certify compliance with the
requirements for--
(I) energy and water
evaluations under paragraph
(3);
(II) implementation of
identified energy and water
measures under paragraph (4);
and
(III) follow-up on
implemented measures under
paragraph (5); and
(ii) to publish energy and water
consumption data on an individual
facility basis.
(B) Deployment.--
(i) In general.--Not later than 1
year after the date of enactment of
this subsection, the Secretary shall
develop and deploy a web-based tracking
system required under this paragraph in
a manner that tracks, at a minimum--
(I) the covered facilities;
(II) the status of meeting
the requirements specified in
subparagraph (A);
(III) the estimated cost and
savings for measures required
to be implemented in a
facility;
(IV) the measured savings and
persistence of savings for
implemented measures; and
(V) the benchmarking
information disclosed under
paragraph (8)(C).
(ii) Ease of compliance.--The
Secretary shall ensure that energy
manager compliance with the
requirements in this paragraph, to the
maximum extent practicable--
(I) can be accomplished with
the use of streamlined
procedures and templates that
minimize the time demands on
Federal employees; and
(II) is coordinated with
other applicable energy
reporting requirements.
(C) Availability.--
(i) In general.--Subject to clause
(ii), the Secretary shall make the web-
based tracking system required under
this paragraph available to Congress,
other Federal agencies, and the public
through the Internet.
(ii) Exemptions.--At the request of a
Federal agency, the Secretary may
exempt specific data for specific
facilities from disclosure under clause
(i) for national security purposes.
(iii) Summary report.--The Secretary
shall make publicly available a report
that summarizes the information tracked
under subparagraph (B)(i) by each
agency and, as applicable, by each type
of measure.
(8) Benchmarking of federal facilities.--
(A) In general.--The energy manager shall
enter energy use data for each metered building
that is (or is a part of) a facility that meets
the criteria established by the Secretary under
paragraph (2)(B) into a building energy use
benchmarking system, such as the Energy Star
Portfolio Manager.
(B) System and guidance.--Not later than 1
year after the date of enactment of this
subsection, the Secretary shall--
(i) select or develop the building
energy use benchmarking system required
under this paragraph for each type of
building; and
(ii) issue guidance for use of the
system.
(C) Public disclosure.--Each energy manager
shall post the information entered into, or
generated by, a benchmarking system under this
subsection, on the web-based tracking system
under paragraph (7)(B). The energy manager
shall update such information each year, and
shall include in such reporting previous years'
information to allow changes in building
performance to be tracked over time.
(9) Federal agency scorecards.--
(A) In general.--The Director of the Office
of Management and Budget shall issue semiannual
scorecards for energy management activities
carried out by each Federal agency that
includes--
(i) summaries of the status of
implementing the various requirements
of the agency and its energy managers
under this subsection; and
(ii) any other means of measuring
performance that the Director considers
appropriate.
(B) Availability.--The Director shall make
the scorecards required under this paragraph
available to Congress, other Federal agencies,
and the public through the Internet.
(10) Funding and implementation.--
(A) Authorization of appropriations.--There
are authorized to be appropriated such sums as
are necessary to carry out this subsection.
(B) Funding options.--
(i) In general.--To carry out this
subsection, a Federal agency may use
any combination of--
(I) appropriated funds made
available under subparagraph
(A); and
(II) private financing
otherwise authorized under
Federal law, including
financing available through
energy savings performance
contracts or utility energy
service contracts.
(ii) Combined funding for same
measure.--A Federal agency may use any
combination of appropriated funds and
private financing described in clause
(i) to carry out the same measure under
this subsection.
(C) Implementation.--Each Federal agency may
implement the requirements under this
subsection itself or may contract out
performance of some or all of the requirements.
(11) Rule of construction.--This subsection shall not
be construed to require or to obviate any contractor
savings guarantees.
(g) Large Capital Energy Investments.--
(1) In general.--Each Federal agency shall ensure
that any large capital energy investment in an existing
building that is not a major renovation but involves
replacement of installed equipment (such as heating and
cooling systems), or involves renovation,
rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle
cost effective.
(2) Process for review of investment decisions.--Not
later than 180 days after the date of enactment of this
subsection, each Federal agency shall--
(A) develop a process for reviewing each
decision made on a large capital energy
investment described in paragraph (1) to ensure
that the requirements of this subsection are
met; and
(B) report to the Director of the Office of
Management and Budget on the process
established.
(3) Compliance report.--Not later than 1 year after
the date of enactment of this subsection, the Director
of the Office of Management and Budget shall evaluate
and report to Congress on the compliance of each agency
with this subsection.
* * * * * * *
SEC. 548. REPORTS.
(a) Reports to the Secretary.--Each agency shall transmit a
report to the Secretary, at times specified by the Secretary
but at least annually, with complete information on its
activities under this part, including information on--
(1) the agency's progress in achieving the goals
established by section 543; and
(2) the procedures being used by the agency pursuant
to section 546(a)(2), the number of contracts entered
into by such agency under title VIII of this Act, the
energy and cost savings that have resulted from such
contracts and any termination penalty exposure, the use
of such cost savings under section 546(c), and any
problem encountered in entering into such contracts and
otherwise implementing section 546.
(b) Reports to the President and Congress.--The Secretary
shall report, not later than April 2 of each year, with respect
to each fiscal year beginning after the date of the enactment
of this subsection, to the President and Congress--
(1) on all activities carried out under this part and
on the progress made toward achievement of the
objectives of this part, including--
(A) a copy of the list of the exclusions made
under sections 543(a)(2) and 543(c)(3);
(B) the information required under section
543(b)(2); and
(C) a statement detailing the amount of funds
awarded to each agency under section 546(b),
the energy and water conservation measures
installed with such funds, the projected energy
and water savings to be realized from installed
measures, and, for each installed measure for
which the projected energy and water savings
reported in the previous year were not
realized, the percentage of such projected
savings that was not realized, the reasons such
savings were not realized, and proposals for,
and projected costs of, achieving such
projected savings in the future;
(2) the number of contracts entered into by all
agencies under title VIII of this Act, the difficulties
(if any) encountered in attempting to enter into such
contracts, and proposed solutions to those
difficulties;
(3) the extent and nature of interagency exchange of
information concerning the conservation and efficient
utilization of energy; [and]
(4) the information required under section 161(d) of
the Energy Policy Act of 1992[.]; and
(5) the status of each agency's energy savings
performance contracts and utility energy service
contracts, the investment value of such contracts, the
guaranteed energy savings for the previous year as
compared to the actual energy savings for the previous
year, the plan for entering into such contracts in the
coming year, and information explaining why any
previously submitted plans for such contracts were not
implemented.
(c) Other Report.--The Secretary, in consultation with the
Administrator of General Services, shall--
(1) conduct a study and evaluate legal,
institutional, and other constraints to connecting
buildings owned or leased by the Federal Government to
district heating and district cooling systems; and
(2) not later than 18 months after the date of the
enactment of this subsection, transmit to the Congress
a report containing the findings and conclusions of
such study, including recommendations for the
development of streamlined processes for the
consideration of connecting buildings owned or leased
by the Federal Government to district heating and
cooling systems.
* * * * * * *
[SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.
[(a) In General.--The Secretary shall, in consultation with
the Interagency Energy Management Task Force established under
section 547, carry out an energy survey for the purposes of--
[(1) determining the maximum potential cost effective
energy savings that may be achieved in a representative
sample of buildings owned or leased by the Federal
Government in different areas of the country;
[(2) making recommendations for cost effective energy
efficiency and renewable energy improvements in those
buildings and in other similar Federal buildings; and
[(3) identifying barriers which may prevent an
agency's ability to comply with section 543 and other
energy management goals.
[(b) Implementation.--(1) The Secretary shall transmit to the
Committee on Energy and Natural Resources and the Committee on
Governmental Affairs of the Senate and the Committee on Energy
and Commerce, the Committee on Government Operations, and the
Committee on Public Works and Transportation of the House of
Representatives, within 180 days after the date of the
enactment of the Energy Policy Act of 1992, a plan for
implementing this section.
[(2) The Secretary shall designate buildings to be surveyed
in the project so as to obtain a sample of the buildings of the
types and in the climates that is representative of buildings
owned or leased by Federal agencies in the United States that
consume the major portion of the energy consumed in Federal
buildings. Such sample shall include, where appropriate, the
following types of Federal facility space:
[(A) Housing.
[(B) Storage.
[(C) Office.
[(D) Services.
[(E) Schools.
[(F) Research and Development.
[(G) Industrial.
[(H) Prisons.
[(I) Hospitals.
[(3) For purposes of this section, an improvement shall be
considered cost effective if the cost of the energy saved or
displaced by the improvement exceeds the cost of the
improvement over the remaining life of a Federal building or
the remaining term of a lease of a building leased by the
Federal Government as determined by the life cycle costing
methodology developed under section 544.
[(c) Personnel.--(1) In carrying out this section, the
Secretary shall utilize personnel who are--
[(A) employees of the Department of Energy; or
[(B) selected by the agencies utilizing the buildings
which are being surveyed under this section.
[(2) Such personnel shall be detailed for the purpose of
carrying out this section without any reduction of salary or
benefits.
[(d) Report.--As soon as practicable after the completion of
the project carried out under this section, the Secretary shall
transmit a report of the findings and conclusions of the
project to the Committee on Energy and Natural Resources and
the Committee on Governmental Affairs of the Senate, the
Committee on Energy and Commerce, the Committee on Government
Operations, and the Committee on Public Works and
Transportation of the House of Representatives, and the
agencies who own the buildings involved in such project. Such
report shall include an analysis of the probability of each
agency achieving each of the energy reduction goals established
under section 543(a).]
SEC. 551. DEFINITIONS.
For the purposes of this part--
(1) the term ``agency'' has the meaning given it in
section 551(1) of title 5, United States Code;
(2) the term ``construction'' means new construction
or substantial rehabilitation of existing structures;
(3) the term ``cogeneration facilities'' has the same
meaning given such term in section 3(18)(A) of the
Federal Power Act (16 U.S.C. 796(18)(A));
(4) the term ``energy conservation measures'' means
measures that are applied to a Federal building that
improve energy efficiency and are life cycle cost
effective and that involve energy conservation,
cogeneration facilities, renewable energy sources,
improvements in operations and maintenance
efficiencies, [or retrofit activities] retrofit
activities, or energy consuming devices and required
support structures;
(5) the term ``energy survey'' means a procedure used
to determine energy and cost savings likely to result
from the use of appropriate energy related maintenance
and operating procedures and modifications, including
the purchase and installation of particular energy-
related equipment and the use of renewable energy
sources;
(6) the term ``Federal building'' means any building,
structure, or facility, or part thereof, including the
associated energy consuming support systems, which is
constructed, renovated, leased, or purchased in whole
or in part for use by the Federal Government and which
consumes energy; such term also means a collection of
such buildings, structures, or facilities and the
energy consuming support systems for such collection;
(7) the term ``life cycle cost'' means the total
costs of owning, operating, and maintaining a building
over its useful life (including such costs as fuel,
energy, labor, and replacement components) determined
on the basis of a systematic evaluation and comparison
of alternative building systems, except that in the
case of leased buildings, the life cycle costs shall be
calculated over the effective remaining term of the
lease;
(8) the term ``renewable energy sources'' includes,
but is not limited to, sources such as agriculture and
urban waste, geothermal energy, solar energy, and wind
energy; and
(9) the term ``Secretary'' means the Secretary of
Energy.
* * * * * * *
[PART 4--FEDERAL PHOTOVOLTAIC UTILIZATION
[SEC. 561. SHORT TITLE OF PART.
[This part may be cited as the ``Federal Photovoltaic
Utilization Act''.
[SEC. 562. DEFINITIONS.
[For purposes of this part--
[(1) The term ``Federal facility'' means any
building, structure, or fixture or part thereof which
is owned by the United States or any Federal agency or
which is held by the United States or any Federal
agency under a lease-acquisition agreement under which
the United States or a Federal agency will receive fee
simple title under the terms of such agreement without
further negotiation. Such term also applies to
facilities related to programs administered by Federal
agencies.
[(2) The term ``Secretary'' means the Secretary of
Energy.
[SEC. 563. PHOTOVOLTAIC ENERGY PROGRAM.
[There is hereby established a photovoltaic energy
commercialization program for the accelerated procurement and
installation of photovoltaic solar electric systems for
electric production in Federal facilities.
[SEC. 564. PURPOSE OF PROGRAM.
[The purpose of the program established by section 563 is
to--
[(1) accelerate the growth of a commercially viable
and competitive industry to make photovoltaic solar
electric systems available to the general public as an
option in order to reduce national consumption of
fossil fuel;
[(2) reduce fossil fuel costs to the Federal
Government;
[(3) stimulate the general use within the Federal
Government of methods for the minimization of life
cycle costs; and
[(4) develop performance data on the program
established by section 563.
[SEC. 565. ACQUISITION OF SYSTEMS.
[The program established by section 563 shall provide for the
acquisition of photovoltaic solar electric systems and
associated storage capability by the Secretary for their use by
Federal agencies, and for the acquisition of such systems and
associated capability by Federal agencies for their own use in
cases where the authority to make such acquisition has been
delegated to the agency involved by the Secretary. The
acquisition of photovoltaic solar electric systems shall be at
an annual level substantial enough to allow use of low-cost
production techniques by suppliers of such systems. The
Secretary (or other Federal agency acting under delegation from
the Secretary) is authorized to make such acquisitions through
the use of multiyear contracts. Authority under this part to
enter into acquisition contracts shall be only to the extent as
may be provided in advance in appropriation Acts.
[SEC. 566. ADMINISTRATION.
[The Secretary shall administer the program established
under section 563 and shall--
[(1) consult with the Secretary of Defense to insure
that the installation and purchase of photovoltaic
solar electric systems pursuant to this part shall not
interfere with defense-related activities;
[(2) prescribe such requirements as may be
appropriate to monitor and assess the performance and
operation of photovoltaic electric systems installed
pursuant to this part; and
[(3) report annually to the Congress on the status of
the program.
Notwithstanding any other provision of law, the Secretary shall
not be subject to the requirements of section 553 of title 5,
United States Code, in the performance of his functions under
this part.
[SEC. 567. SYSTEM EVALUATION AND PURCHASE PROGRAM.
[(a) Program.--The Secretary shall establish, within 60 days
after the date of the enactment of this part, a photovoltaic
systems evaluation and purchase program to provide such systems
as are required by the Federal agencies to carry out this part.
In acquiring photovoltaic solar electric systems under this
part, the Secretary (or other Federal agency acting under
delegation from the Secretary) shall insure that such systems
reflect to the maximum extent practicable the most advanced and
reliable technologies and shall schedule purchases in a manner
which will stimulate the early development of a permanent low-
cost private photovoltaic production capability in the United
States, and to stimulate the private sector market for
photovoltaic power systems. The Secretary and other Federal
agencies acting under delegation from the Secretary shall,
subject to the availability of appropriated funds, procure not
more than 30 megawatts of photovoltaic solar electric systems
during fiscal years ending September 30, 1979, September 30,
1980, and September 30, 1981.
[(b) Other Procurement.--Nothing in this part shall preclude
any Federal agency from directly procuring a photovoltaic solar
electric system (in lieu of obtaining one under the program
under subsection (a)), except that any such Federal agency
shall consult with the Secretary before procuring such a
system.
[SEC. 568. ADVISORY COMMITTEE.
[(a) Establishment.--There is hereby established an advisory
committee to assist the Secretary in the establishment and
conduct of the programs established under this part.
[(b) Membership.--Such committee shall be composed of the
Secretary of Defense, the Secretary of Housing and Urban
Development, the Administrator of the National Aeronautics and
Space Administration, the Administrator of the General Services
Administration, the Secretary of Transportation, the
Administrator of the Small Business Administration, the
chairman of the Federal Trade Commission, the Postmaster
General, and such other persons as the Secretary deems
necessary. The Secretary shall appoint such other
nongovernmental persons to the extent necessary to assure that
the membership of the committee will be fairly balanced in
terms of the point of view represented and the functions to be
performed by the committee.
[(c) Termination.--The advisory committee shall terminate
October 1, 1981.
[SEC. 569. AUTHORIZATION OF APPROPRIATIONS.
[For the purposes of this part, there is authorized to be
appropriated to the Secretary not to exceed $98,000,000, for
the period beginning October 1, 1978, and ending September 30,
1981.]
[PART 5--PEAK DEMAND REDUCTION
[SEC. 571. NATIONAL ACTION PLAN FOR DEMAND RESPONSE.
[(a) National Assessment and Report.--The Federal Energy
Regulatory Commission (``Commission'') shall conduct a National
Assessment of Demand Response. The Commission shall, within 18
months of the date of enactment of this part, submit a report
to Congress that includes each of the following:
[(1) Estimation of nationwide demand response
potential in 5 and 10 year horizons, including data on
a State-by-State basis, and a methodology for updates
of such estimates on an annual basis.
[(2) Estimation of how much of this potential can be
achieved within 5 and 10 years after the enactment of
this part accompanied by specific policy
recommendations that if implemented can achieve the
estimated potential. Such recommendations shall include
options for funding and/or incentives for the
development of demand response resources.
[(3) The Commission shall further note any barriers
to demand response programs offering flexible, non-
discriminatory, and fairly compensatory terms for the
services and benefits made available, and shall provide
recommendations for overcoming such barriers.
[(4) The Commission shall seek to take advantage of
preexisting research and ongoing work, and shall insure
that there is no duplication of effort.
[(b) National Action Plan on Demand Response.--The Commission
shall further develop a National Action Plan on Demand
Response, soliciting and accepting input and participation from
a broad range of industry stakeholders, State regulatory
utility commissioners, and non-governmental groups. The
Commission shall seek consensus where possible, and decide on
optimum solutions to issues that defy consensus. Such Plan
shall be completed within 1 year after the completion of the
National Assessment of Demand Response, and shall meet each of
the following objectives:
[(1) Identification of requirements for technical
assistance to States to allow them to maximize the
amount of demand response resources that can be
developed and deployed.
[(2) Design and identification of requirements for
implementation of a national communications program
that includes broad-based customer education and
support.
[(3) Development or identification of analytical
tools, information, model regulatory provisions, model
contracts, and other support materials for use by
customers, States, utilities and demand response
providers.
[(c) Upon completion, the National Action Plan on Demand
Response shall be published, together with any favorable and
dissenting comments submitted by participants in its
preparation. Six months after publication, the Commission,
together with the Secretary of Energy, shall submit to Congress
a proposal to implement the Action Plan, including specific
proposed assignments of responsibility, proposed budget
amounts, and any agreements secured for participation from
State and other participants.
[(d) Authorization.--There are authorized to be appropriated
to the Commission to carry out this section not more than
$10,000,000 for each of the fiscal years 2008, 2009, and 2010.]
* * * * * * *
TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS
SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.
(a) In General.--(1) The head of a Federal agency may enter
into contracts under this title solely for the purpose of
achieving energy savings and benefits ancillary to that
purpose. Each such contract may, notwithstanding any other
provision of law, be for a period not to exceed 25 years. Such
contract shall provide that the contractor shall incur costs of
implementing energy savings measures, including at least the
cost (if any) incurred in making energy audits, acquiring and
installing equipment, and training personnel, in exchange for a
share of any energy savings directly resulting from
implementation of such measures during the term of the
contract.
(2)(A) Contracts under this title shall be energy savings
performance contracts and shall require an annual energy audit
and specify the terms and conditions of any Government payments
and performance guarantees. Any such performance guarantee
shall provide that the contractor is responsible for
maintenance and repair services for any energy related
equipment, including computer software systems.
(B) Aggregate annual payments by an agency to both utilities
and energy savings performance contractors, under an energy
savings performance contract, may not exceed the amount that
the agency would have paid for utilities without an energy
savings performance contract (as estimated through the
procedures developed pursuant to this section) during contract
years. The contract shall provide for a guarantee of savings to
the agency, and shall establish payment schedules reflecting
such guarantee, taking into account any capital costs under the
contract.
(C) Federal agencies may incur obligations pursuant to such
contracts to finance energy conservation measures provided
guaranteed savings exceed the debt service requirements.
(D) A Federal agency may enter into a multiyear contract
under this title for a period not to exceed 25 years beginning
on the date of the delivery order, without funding of
cancellation charges before cancellation, if--
(i) such contract was awarded in a competitive manner
pursuant to subsection (b)(2), using procedures and
methods established under this title;
(ii) funds are available and adequate for payment of
the costs of such contract for the first fiscal year;
and
(iii) such contract is governed by part 17.1 of the
Federal Acquisition Regulation promulgated under
section 25 of the Office of Federal Procurement Policy
Act (41 U.S.C. 421) or the applicable rules promulgated
under this title.
(E) Funding options.--In carrying out a contract
under this title, a Federal agency may use any
combination of--
(i) appropriated funds; and
(ii) private financing under an energy
savings performance contract.
(F) Promotion of contracts.--In carrying out this
section, a Federal agency shall not--
(i) establish a Federal agency policy that
limits the maximum contract term under
subparagraph (D) to a period shorter than 25
years; [or]
(ii) limit the total amount of obligations
under energy savings performance contracts or
other private financing of energy savings
measures[.]; or
(iii) limit the recognition of operation and
maintenance savings associated with systems
modernized or replaced with the implementation
of energy conservation measures, water
conservation measures, or any series of energy
conservation measures and water conservation
measures.
(G) Measurement and verification requirements for
private financing.--
(i) In general.--In the case of energy
savings performance contracts, the evaluations
and savings measurement and verification
required under paragraphs (2) and (4) of
section 543(f) shall be used by a Federal
agency to meet the requirements for the need
for energy audits, calculation of energy
savings, and any other evaluation of costs and
savings needed to implement the guarantee of
savings under this section.
(ii) Modification of existing contracts.--Not
later than 18 months after the date of
enactment of this subparagraph, each Federal
agency shall, to the maximum extent
practicable, modify any indefinite delivery and
indefinite quantity energy savings performance
contracts, and other indefinite delivery and
indefinite quantity contracts using private
financing, to conform to the amendments made by
subtitle B of title V of the Energy
Independence and Security Act of 2007.
(H) Miscellaneous authority.--Notwithstanding any
other provision of law, a Federal agency may sell or
transfer energy savings and apply the proceeds of such
sale or transfer to fund a contract under this title.
(b) Implementation.--(1)(A) The Secretary, with the
concurrence of the Federal Acquisition Regulatory Council
established under section 25(a) of the Office of Federal
Procurement Policy Act, not later than 180 days after the date
of the enactment of the Energy Policy Act of 1992, shall, by
rule, establish appropriate procedures and methods for use by
Federal agencies to select, monitor, and terminate contracts
with energy service contractors in accordance with laws
governing Federal procurement that will achieve the intent of
this section in a cost-effective manner. In developing such
procedures and methods, the Secretary, with the concurrence of
the Federal Acquisition Regulatory Council, shall determine
which existing regulations are inconsistent with the intent of
this section and shall formulate substitute regulations
consistent with laws governing Federal procurement.
(B) The procedures and methods established pursuant to
subparagraph (A) shall be the procedures and contracting
methods for selection, by an agency, of a contractor to provide
energy savings performance services. Such procedures and
methods shall provide for the calculation of energy savings
based on sound engineering and financial practices.
(2) The procedures and methods established pursuant to
paragraph (1)(A) shall--
(A) allow the Secretary to--
(i) request statements of qualifications,
which shall, at a minimum, include prior
experience and capabilities of contractors to
perform the proposed types of energy savings
services and financial and performance
information, from firms engaged in providing
energy savings services; and
(ii) from the statements received, designate
and prepare a list, with an update at least
annually, of those firms that are qualified to
provide energy savings services;
(B) require each agency to use the list prepared by
the Secretary pursuant to subparagraph (A)(ii) unless
the agency elects to develop an agency list of firms
qualified to provide energy savings performance
services using the same selection procedures and
methods as are required of the Secretary in preparing
such lists; and
(C) allow the head of each agency to--
(i) select firms from the list prepared
pursuant to subparagraph (A)(ii) or the list
prepared by the agency pursuant to subparagraph
(B) to conduct discussions concerning a
particular proposed energy savings project,
including requesting a technical and price
proposal from such selected firms for such
project;
(ii) select from such firms the most
qualified firm to provide energy savings
services based on technical and price proposals
and any other relevant information;
(iii) permit receipt of unsolicited proposals
for energy savings performance contracting
services from a firm that such agency has
determined is qualified to provide such
services under the procedures established
pursuant to paragraph (1)(A), and require
agency facility managers to place a notice in
the Commerce Business Daily announcing they
have received such a proposal and invite other
similarly qualified firms to submit competing
proposals; and
(iv) enter into an energy savings performance
contract with a firm qualified under clause
(iii), consistent with the procedures and
methods established pursuant to paragraph
(1)(A).
(3) A firm not designated as qualified to provide energy
savings services under paragraph (2)(A)(i) or paragraph (2)(B)
may request a review of such decision to be conducted in
accordance with procedures to be developed by the board of
contract appeals of the General Services Administration.
(c) Task or Delivery Orders.--(1) The head of a Federal
agency may issue a task or delivery order under an energy
savings performance contract by--
(A) notifying all contractors that have received an
award under such contract that the agency proposes to
discuss energy savings performance services for some or
all of its facilities and, following a reasonable
period of time to provide a proposal in response to the
notice, soliciting from such contractors the submission
of expressions of interest in, and contractor
qualifications for, performing site surveys or
investigations and feasibility designs and studies, and
including in the notice summary information concerning
energy use for any facilities that the agency has
specific interest in including in such task or delivery
order;
(B) reviewing all expressions of interest and
qualifications submitted pursuant to the notice under
subparagraph (A);
(C) selecting two or more contractors (from among
those reviewed under subparagraph (B)) to conduct
discussions concerning the contractors' respective
qualifications to implement potential energy
conservation measures, including--
(i) requesting references and specific
detailed examples with respect to similar
efforts and the resulting energy savings of
such similar efforts; and
(ii) requesting an explanation of how such
similar efforts relate to the scope and content
of the task or delivery order concerned;
(D) selecting and authorizing--
(i) more than one contractor (from among
those selected under subparagraph (C)) to
conduct site surveys, investigations,
feasibility designs and studies, or similar
assessments for the energy savings performance
contract services (or for discrete portions of
such services), for the purpose of allowing
each such contractor to submit a firm, fixed-
price proposal to implement specific energy
conservation measures; or
(ii) one contractor (from among those
selected under subparagraph (C)) to conduct a
site survey, investigation, feasibility design
and study, or similar assessment for the
purpose of allowing the contractor to submit a
firm, fixed-price proposal to implement
specific energy conservation measures;
(E) providing a debriefing to any contractor not
selected under subparagraph (D);
(F) negotiating a task or delivery order for energy
savings performance contracting services with the
contractor or contractors selected under subparagraph
(D) based on the energy conservation measures
identified; and
(G) issuing a task or delivery order for energy
savings performance contracting services to such
contractor or contractors.
(2) The issuance of a task or delivery order for energy
savings performance contracting services pursuant to paragraph
(1) is deemed to satisfy the task and delivery order
competition requirements in section 2304c(d) of title 10,
United States Code, and section 303J(d) of the Federal Property
and Administrative Services Act of 1949 (41 U.S.C. 253j(d)).
(3) The Secretary may issue guidance as necessary to agencies
issuing task or delivery orders pursuant to paragraph (1).
SEC. 802. PAYMENT OF COSTS.
Any amount paid by a Federal agency pursuant to any contract
entered into under this title may be paid only from funds
appropriated or otherwise made available to the agency for
fiscal year 1986 or any fiscal year thereafter for the payment
of energy, water, or wastewater treatment expenses [(and
related operation and maintenance expenses)], including related
operations and maintenance expenses.
* * * * * * *
SEC. 804. DEFINITIONS.
For purposes of this title, the following definitions apply:
(1) The term ``Federal agency'' means each authority
of the Government of the United States, whether or not
it is within or subject to review by another agency.
(2) The term ``energy savings'' means--
(A) a reduction in the cost of energy, water,
or wastewater treatment, from a base cost
established through a methodology set forth in
the contract, used in an existing [federally
owned building or buildings or other federally
owned facilities] Federal building (as defined
in section 551 (42 U.S.C. 8259)) as a result
of--
(i) the lease or purchase of
operating equipment, improvements,
altered operation and maintenance, or
technical services;
(ii) the increased efficient use of
existing energy sources by cogeneration
or heat recovery, excluding any
cogeneration process for other than a
[federally owned building or buildings
or other federally owned facilities]
Federal building (as defined in section
551 (42 U.S.C. 8259)); or
(iii) the increased efficient use of
existing water sources in either
interior or exterior applications;
(B) the increased efficient use of an
existing energy source by cogeneration or heat
recovery;
(C) if otherwise authorized by Federal or
State law (including regulations), the sale or
transfer of electrical or thermal energy
generated on-site from renewable energy sources
or cogeneration, but in excess of Federal
needs, to utilities or non-Federal energy
users[; and];
(D) the increased efficient use of existing
water sources in interior or exterior
applications[.];
(E) the use, sale, or transfer of energy
incentives, rebates, or credits (including
renewable energy credits) from Federal, State,
or local governments or utilities; and
(F) any revenue generated from a reduction in
energy or water use, more efficient waste
recycling, or additional energy generated from
more efficient equipment.
(3) The terms ``energy savings contract'' and
``energy savings performance contract'' mean a contract
that provides for the performance of services for the
design, acquisition, installation, testing, and, where
appropriate, operation, maintenance, and repair, of an
identified energy or water conservation measure or
series of measures at 1 or more locations. Such
contracts shall, with respect to an agency facility
that is a public building (as such term is defined in
section 3301 of title 40, United States Code), be in
compliance with the prospectus requirements and
procedures of section 3307 of title 40, United States
Code.
(4) The term ``energy or water conservation measure''
means--
(A) an energy conservation measure, as
defined in section 551; or
(B) a water conservation measure that
improves the efficiency of water use, is life-
cycle cost-effective, and involves water
conservation, water recycling or reuse, more
efficient treatment of wastewater or
stormwater, improvements in operation or
maintenance efficiencies, retrofit activities,
or other related activities, not at a Federal
hydroelectric facility.
----------
ENERGY CONSERVATION AND PRODUCTION ACT
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the ``Energy Conservation and Production
Act''.
* * * * * * *
TITLE II--ELECTRIC UTILITIES RATE DESIGN INITIATIVES
* * * * * * *
[Sec. 207. State utility regulatory assistance.]
* * * * * * *
TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS
* * * * * * *
[Sec. 307. Support for voluntary building energy codes.]
Sec. 307. Support for model building energy codes.
* * * * * * *
TITLE II--ELECTRIC UTILITY RATE DESIGN INITIATIVES
* * * * * * *
[state utility regulatory assistance
[Sec. 207. (a) The Secretary may make grants to State utility
regulatory commissions and nonregulated electric utilities (as
defined in the Public Utility Regulatory Policies Act of 1978)
to carry out duties and responsibilities under titles I and
III, and section 210, of the Public Utility Regulatory Policies
Act of 1978. No grant may be made under this section to any
Federal agency.
[(b) Any requirements established by the Secretary with
respect to grants under this section may be only such
requirements as are necessary to assure that such grants are
expended solely to carry out duties and responsibilities
referred to in subsection (a) or such as are otherwise required
by law.
[(c) No grant may be made under this section unless an
application for such grant is submitted to the Secretary in
such form and manner as the Secretary may require. The
Secretary may not approve an application of a State utility
regulatory commission or nonregulated electric utility unless
such commission or nonregulated electric utility assures the
Secretary that funds made available under this section will be
in addition to, and not in substitution for, funds made
available to such commission or nonregulated electric utility
from other governmental sources.
[(d) The funds appropriated for purposes of this section
shall be apportioned among the States in such manner that
grants made under this section in each State shall not exceed
the lesser of--
[(1) the amount determined by dividing equally among
all States the total amount available under this
section for such grants, or
[(2) the amount which the Secretary is authorized to
provide pursuant to subsections (b) and (c) of this
section for such State.]
* * * * * * *
TITLE III--ENERGY CONSERVATION STANDARDS FOR NEW BUILDINGS
* * * * * * *
definitions
Sec. 303. As used in this title:
(1) The term ``Administrator'' means the
Administrator of the Federal Energy Administration;
except that after such Administration ceases to exist,
such term means any officer of the United States
designated by the President for purposes of this title.
(2) The term ``building'' means any structure to be
constructed which includes provision for a heating or
cooling system, or both, or for a hot water system.
(3) The term ``building code'' means a legal
instrument which is in effect in a State or unit of
general purpose local government, the provisions of
which must be adhered to if a building is to be
considered to be in conformance with law and suitable
for occupancy and use.
(4) The term ``commercial building'' means any
building other than a residential building, including
any building developed for industrial or public
purposes.
(5) The term ``Federal agency'' means any department,
agency, corporation, or other entity or instrumentality
of the executive branch of the Federal Government,
including the United States Postal Service, the Federal
National Mortgage Association, and the Federal Home
Loan Mortgage Corporation.
(6) The term ``Federal building'' means any building
[to be constructed] constructed or altered by, or for
the use of, any Federal agency. Such term shall include
buildings built for the purpose of being leased by a
Federal agency, and privatized military housing.
(7) The term ``Federal financial assistance'' means
(A) any form of loan, grant, guarantee, insurance,
payment, rebate, subsidy, or any other form of direct
or indirect Federal assistance (other than general or
special revenue sharing or formula grants made to
States) approved by any Federal officer or agency; or
(B) any loan made or purchased by any bank, savings and
loan association, or similar institution subject to
regulation by the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance
Corporation, the Comptroller of the Currency, the
Federal Home Loan Bank Board, the Federal Savings and
Loan Insurance Corporation, or the National Credit
Union Administration.
(8) The term ``National Institute of Building
Sciences'' means the institute established by section
809 of the Housing and Community Development Act of
1974.
(9) The term ``residential building'' means any
structure which is constructed and developed for
residential occupancy.
(10) The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(11) The term ``State'' includes each of the several
States, the District of Columbia, the Commonwealth of
Puerto Rico, and any territory and possession of the
United States.
(12) The term ``unit of general purpose local
government'' means any city, county, town,
municipality, or other political subdivision of a State
(or any combination thereof), which has a building code
or similar authority over a particular geographic area.
(13) The term ``Federal building energy standards''
means energy consumption objectives to be met without
specification of the methods, materials, or equipment
to be employed in achieving those objectives, but
including statements of the requirements, criteria, and
evaluation methods to be used, and any necessary
commentary.
[(14) The term ``voluntary building energy code''
means a building energy code developed and updated
through a consensus process among interested persons,
such as that used by the Council of American Building
Officials; the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers; or other
appropriate organizations.]
(14) Model building energy code.--The term ``model
building energy code'' means a voluntary building
energy code or standard developed and updated through a
consensus process among interested persons, such as the
IECC or ASHRAE Standard 90.1 or a code used by other
appropriate organizations regarding which the Secretary
has issued a determination that buildings subject to it
would achieve greater energy efficiency than under a
previously developed code.
(15) The term ``CABO'' means the Council of American
Building Officials.
(16) The term ``ASHRAE'' means the American Society
of Heating, Refrigerating, and Air-Conditioning
Engineers.
(17) 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.
(18) ASHRAE standard 90.1.--The term ``ASHRAE
Standard 90.1'' means the American Society of Heating,
Refrigerating and Air-Conditioning Engineers ANSI/
ASHRAE/IES Standard 90/1 Energy Standard for Buildings
Except Low-Rise Residential Buildings.
(19) Cost-effective.--The term ``cost-effective''
means having a simple payback of 10 years or less.
(20) IECC.--The term ``IECC'' means the International
Energy Conservation Code as published by the
International Code Council.
(21) 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).
(22) Simple payback.--The term ``simple payback''
means the time in years that is required for energy
savings to exceed the incremental first cost of a new
requirement or code.
(23) Technically feasible.--The term ``technically
feasible'' means capable of being achieved, based on
widely available appliances, equipment, technologies,
materials, and construction practices.
[SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
[(a) Consideration and Determination Respecting Residential
Building Energy Codes.--(1) Not later than 2 years after the
date of the enactment of the Energy Policy Act of 1992, each
State shall certify to the Secretary that it has reviewed the
provisions of its residential building code regarding energy
efficiency and made a determination as to whether it is
appropriate for such State to revise such residential building
code provisions to meet or exceed CABO Model Energy Code, 1992.
[(2) The determination referred to in paragraph (1) shall
be--
[(A) made after public notice and hearing;
[(B) in writing;
[(C) based upon findings included in such
determination and upon the evidence presented at the
hearing; and
[(D) available to the public.
[(3) Each State may, to the extent consistent with otherwise
applicable State law, revise the provisions of its residential
building code regarding energy efficiency to meet or exceed
CABO Model Energy Code, 1992, or may decline to make such
revisions.
[(4) If a State makes a determination under paragraph (1)
that it is not appropriate for such State to revise its
residential building code, such State shall submit to the
Secretary, in writing, the reasons for such determination, and
such statement shall be available to the public.
[(5)(A) Whenever CABO Model Energy Code, 1992, (or any
successor of such code) is revised, the Secretary shall, not
later than 12 months after such revision, determine whether
such revision would improve energy efficiency in residential
buildings. The Secretary shall publish notice of such
determination in the Federal Register.
[(B) If the Secretary makes an affirmative determination
under subparagraph (A), each State shall, not later than 2
years after the date of the publication of such determination,
certify that it has reviewed the provisions of its residential
building code regarding energy efficiency and made a
determination as to whether it is appropriate for such State to
revise such residential building code provisions to meet or
exceed the revised code for which the Secretary made such
determination.
[(C) Paragraphs (2), (3), and (4) shall apply to any
determination made under subparagraph (B).
[(b) Certification of Commercial Building Energy Code
Updates.--(1) Not later than 2 years after the date of the
enactment of the Energy Policy Act of 1992, each State shall
certify to the Secretary that it has reviewed and updated the
provisions of its commercial building code regarding energy
efficiency. Such certification shall include a demonstration
that such State's code provisions meet or exceed the
requirements of ASHRAE Standard 90.1-1989.
[(2)(A) Whenever the provisions of ASHRAE Standard 90.1-1989
(or any successor standard) regarding energy efficiency in
commercial buildings are revised, the Secretary shall, not
later than 12 months after the date of such revision, determine
whether such revision will improve energy efficiency in
commercial buildings. The Secretary shall publish a notice of
such determination in the Federal Register.
[(B)(i) If the Secretary makes an affirmative determination
under subparagraph (A), each State shall, not later than 2
years after the date of the publication of such determination,
certify that it has reviewed and updated the provisions of its
commercial building code regarding energy efficiency in
accordance with the revised standard for which such
determination was made. Such certification shall include a
demonstration that the provisions of such State's commercial
building code regarding energy efficiency meet or exceed such
revised standard.
[(ii) If the Secretary makes a determination under
subparagraph (A) that such revised standard will not improve
energy efficiency in commercial buildings, State commercial
building code provisions regarding energy efficiency shall meet
or exceed ASHRAE Standard 90.1-1989, or if such standard has
been revised, the last revised standard for which the Secretary
has made an affirmative determination under subparagraph (A).
[(c) Extensions.--The Secretary shall permit extensions of
the deadlines for the certification requirements under
subsections (a) and (b) if a State can demonstrate that it has
made a good faith effort to comply with such requirements and
that it has made significant progress in doing so.
[(d) Technical Assistance.--The Secretary shall provide
technical assistance to States to implement the requirements of
this section, and to improve and implement State residential
and commercial building energy efficiency codes or to otherwise
promote the design and construction of energy efficient
buildings.
[(e) Availability of Incentive Funding.--(1) The Secretary
shall provide incentive funding to States to implement the
requirements of this section, and to improve and implement
State residential and commercial building energy efficiency
codes, including increasing and verifying compliance with such
codes. In determining whether, and in what amount, to provide
incentive funding under this subsection, the Secretary shall
consider the actions proposed by the State to implement the
requirements of this section, to improve and implement
residential and commercial building energy efficiency codes,
and to promote building energy efficiency through the use of
such codes.
[(2) Additional funding shall be provided under this
subsection for implementation of a plan to achieve and document
at least a 90 percent rate of compliance with residential and
commercial building energy efficiency codes, based on energy
performance--
[(A) to a State that has adopted and is implementing,
on a statewide basis--
[(i) a residential building energy efficiency
code that meets or exceeds the requirements of
the 2004 International Energy Conservation
Code, or any succeeding version of that code
that has received an affirmative determination
from the Secretary under subsection (a)(5)(A);
and
[(ii) a commercial building energy efficiency
code that meets or exceeds the requirements of
the ASHRAE Standard 90.1-2004, or any
succeeding version of that standard that has
received an affirmative determination from the
Secretary under subsection (b)(2)(A); or
[(B) in a State in which there is no statewide energy
code either for residential buildings or for commercial
buildings, to a local government that has adopted and
is implementing residential and commercial building
energy efficiency codes, as described in subparagraph
(A).
[(3) Of the amounts made available under this subsection, the
Secretary may use $500,000 for each fiscal year to train State
and local officials to implement codes described in paragraph
(2).
[(4)(A) There are authorized to be appropriated to carry out
this subsection--
[(i) $25,000,000 for each of fiscal years 2006
through 2010; and
[(ii) such sums as are necessary for fiscal year 2011
and each fiscal year thereafter.
[(B) Funding provided to States under paragraph (2) for each
fiscal year shall not exceed one-half of the excess of funding
under this subsection over $5,000,000 for the fiscal year.]
SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES.
(a) In General.--The Secretary shall provide technical
assistance, as described in subsection (e), for the purposes
of--
(1) implementation of building energy codes by
States, Indian tribes, and, as appropriate, by local
governments, that are technically feasible and cost-
effective; and
(2) supporting full compliance with the State,
tribal, 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 3 years after
the date on which a model building energy code
is published, 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 statement 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 most
recently published 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 3 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);
(B) determine whether the certification
submitted by the State or Indian tribe,
respectively, is complete; and
(C) if the requirements of subparagraph (B)
are satisfied, validate the certification.
(3) Limitation.--Nothing in this section shall be
interpreted to require a State or Indian tribe to adopt
any building code or provision within a code.
(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 or Indian tribe,
respectively, has--
(i) achieved full compliance under
paragraph (3) with the applicable
certified State or 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 or 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.
(2) Measurement of compliance.--A certification under
paragraph (1) shall include documentation of the rate
of compliance based on--
(A) 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;
(B) determine whether the certification
submitted by the State or Indian tribe is
complete; and
(C) if the requirements of subparagraph (B)
are satisfied, validate the certification.
(6) Limitation.--Nothing in this section shall be
interpreted to require a State or Indian tribe to adopt
any building code or provision within a code.
(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 the status of the State or Indian
tribe with respect to meeting the requirements and
submitting the certification.
(2) State sovereignty.--Nothing in this section shall
be interpreted to require a State or Indian tribe to
adopt any building code or provision within a code.
(3) Local government.--In any State or Indian tribe
for which the Secretary has not validated a
certification under subsection (b) or (c), a local
government may be eligible for Federal support by
meeting the certification requirements of subsections
(b) and (c).
(4) Annual reports by secretary.--
(A) In general.--The Secretary shall annually
submit to Congress, and publish in the Federal
Register, a report on--
(i) the status of model building
energy codes;
(ii) the status of code adoption and
compliance in the States and Indian
tribes;
(iii) implementation of this section;
and
(iv) improvements in energy savings
over time as a result of the targets
established under section 307(b)(2).
(B) Impacts.--The report shall include
estimates of impacts of past action under this
section, and potential impacts of further
action, on--
(i) upfront financial and
construction costs, cost benefits and
returns (using a return on 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.--
(1) In general.--The Secretary shall, upon request,
provide technical assistance to States and Indian
tribes to implement the goals and requirements of this
section--
(A) to implement State residential and
commercial building energy codes; and
(B) to document the rate of compliance with a
building energy code.
(2) Technical assistance.--The assistance shall
include, as requested by the State or Indian tribe,
technical assistance in--
(A) evaluating the energy savings of building
energy codes;
(B) assessing the economic considerations,
referenced in section 307(b)(4), of
implementing building energy codes;
(C) building energy analysis and design
tools;
(D) energy simulation models;
(E) building demonstrations;
(F) developing the 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; and
(G) complying with a performance-based
pathway referenced in the model code.
(3) Exclusion.--For purposes of this section,
``technical assistance'' shall not include actions that
promote or discourage the adoption of a particular
building energy code, code provision, or energy savings
target to a State or Indian tribe.
(4) Information quality and transparency.--For
purposes of this section, information provided by the
Secretary, attendant to any technical assistance
provided to a State or Indian tribe, is ``influential
information'' and shall satisfy the guidelines
established by the Office of Management and Budget and
published at 67 Federal Register 8,452 (Feb. 22, 2002).
(f) Federal Support.--
(1) In general.--The Secretary shall provide support
to States and Indian tribes--
(A) to implement the reporting requirements
of this section; and
(B) to 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.
(2) Exclusion.--Support shall not be given to support
adoption and implementation of model building energy
codes for which the Secretary has made a determination
under section 307(g)(1)(C) that the code is not cost-
effective.
(3) Training.--Support shall be offered to States to
train State and local building code officials to
implement and enforce codes described in paragraph
(1)(B).
(4) Local governments.--States may work under this
subsection with local governments that implement and
enforce codes described in paragraph (1)(B).
(g) Voluntary Programs to Exceed Model Building Energy
Code.--
(1) In general.--The Secretary shall provide
technical assistance, as described in subsection (e),
for the development of voluntary programs that exceed
the model building energy codes for residential and
commercial buildings for use as--
(A) voluntary incentive programs adopted by
local, tribal, or State governments; and
(B) nonbinding guidelines for energy-
efficient building design.
(2) Targets.--The voluntary programs described in
paragraph (1) 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, up to 3 to 6 years in advance of the
target years.
(h) Studies.--
(1) GAO study.--
(A) In general.--The Comptroller General of
the United States shall conduct a study of the
impacts of updating the national model building
energy codes for residential and commercial
buildings. In conducting the study, the
Comptroller General shall consider and report,
at a minimum--
(i) the actual energy consumption
savings stemming from updated energy
codes compared to the energy
consumption savings predicted during
code development;
(ii) the actual consumer cost savings
stemming from updated energy codes
compared to predicted consumer cost
savings; and
(iii) an accounting of expenditures
of the Federal funds under each program
authorized by this title.
(B) Report to congress.--Not later than 3
years after the date of enactment of the North
American Energy Security and Infrastructure Act
of 2015, the Comptroller General of the United
States shall submit a report to the Committee
on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce of the
House of Representatives including the study
findings and conclusions.
(2) Feasibility study.--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--
(A) 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;
(B) code procedures to incorporate a ten-year
payback, not just first-year energy use, in
trade-offs and performance calculations; and
(C) legislative options for increasing energy
savings from building energy codes, including
additional incentives for effective State and
local verification of compliance with and
enforcement of a code.
(3) Energy data in multitenant buildings.--The
Secretary, in consultation with appropriate
representatives of the utility, utility regulatory,
building ownership, and other stakeholders, shall--
(A) undertake a study of best practices
regarding delivery of aggregated energy
consumption information to owners and managers
of residential and commercial buildings with
multiple tenants and uses; and
(B) consider the development of a memorandum
of understanding between and among affected
stakeholders to reduce barriers to the delivery
of aggregated energy consumption information to
such owners and managers.
(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) Funding Limitations.--No Federal funds shall be--
(1) used to support actions by the Secretary, or
States, to promote or discourage the adoption of a
particular building energy code, code provision, or
energy saving target to a State or Indian tribe; or
(2) provided to private third parties or non-
governmental organizations to engage in such
activities.
SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.
(a)(1) In General.--Not later than 2 years after the date of
the enactment of the Energy Policy Act of 1992, the Secretary,
after consulting with appropriate Federal agencies, CABO,
ASHRAE, the National Association of Home Builders, the
Illuminating Engineering Society, the American Institute of
Architects, the National Conference of the States on Building
Codes and Standards, and other appropriate persons, shall
establish, by rule, Federal building energy standards that
require in new Federal buildings those energy efficiency
measures that are technologically feasible and economically
justified. Such standards shall become effective no later than
1 year after such rule is issued.
(2) The standards established under paragraph (1) shall--
(A) contain energy saving and renewable energy
specifications that meet or exceed the energy saving
and renewable energy specifications of the 2004
International Energy Conservation Code (in the case of
residential buildings) or ASHRAE Standard 90.1-2004 (in
the case of commercial buildings);
(B) to the extent practicable, use the same format as
the appropriate [voluntary building energy code] model
building energy code; and
(C) consider, in consultation with the Environmental
Protection Agency and other Federal agencies, and where
appropriate contain, measures with regard to radon and
other indoor air pollutants.
[(3)][(A) Not later than 1 year after the date of enactment
of this paragraph, the Secretary shall establish, by rule,
revised Federal building energy efficiency performance
standards that require that--
[(i) if life-cycle cost-effective for new Federal
buildings--
[(I) the buildings be designed to achieve
energy consumption levels that are at least 30
percent below the levels established in the
version of the ASHRAE Standard or the
International Energy Conservation Code, as
appropriate, that is in effect as of the date
of enactment of this paragraph; and
[(II) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings;
[(ii) if water is used to achieve energy efficiency,
water conservation technologies shall be applied to the
extent that the technologies are life-cycle cost-
effective; and
[(iii) if lifecycle cost-effective, as
compared to other reasonably available
technologies, not less than 30 percent of the
hot water demand for each new Federal building
or Federal building undergoing a major
renovation be met through the installation and
use of solar hot water heaters.]
[(B) Not later than 1 year after the date of approval of each
subsequent revision of the ASHRAE Standard or the International
Energy Conservation Code, as appropriate, the Secretary shall
determine, based on the cost-effectiveness of the requirements
under the amendment, whether the revised standards established
under this paragraph should be updated to reflect the
amendment.]
(3) Revised federal building energy efficiency
performance standards; certification for green
buildings.--
(A) Revised federal building energy
efficiency performance standards.--
(i) In general.--Not later than 1
year after the date of enactment of the
North American Energy Security and
Infrastructure Act of 2015, 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 IECC
(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 North
American Energy
Security and
Infrastructure Act of
2015; 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 IECC 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 version of the
ASHRAE Standard or the
IECC, 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; and
(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.
(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
ASHRAE Standard 90.1 or the IECC, 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.
[(C) In the budget request]
(C) Budget request._In the budget request of
the Federal agency for each fiscal year and
each report submitted by the Federal agency
under section 548(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8258(a)),
the head of each Federal agency shall include--
(i) a list of all new Federal buildings owned,
operated, or controlled by the Federal agency; and
(ii) a statement specifying whether the Federal
buildings meet or exceed the revised standards
established under this paragraph.
[(D) Not later than 1 year after the date of enactment of the
Energy Independence and Security Act of 2007, the Secretary
shall establish, by rule, revised Federal building energy
efficiency performance standards that require that:]
[(i) For new Federal buildings and Federal buildings
undergoing major renovations, with respect to which the
Administrator of General Services is required to
transmit a prospectus to Congress under section 3307 of
title 40, United States Code, in the case of public
buildings (as defined in section 3301 of title 40,
United States Code), or of at least $2,500,000 in costs
adjusted annually for inflation for other buildings:]
[(I) The buildings shall be designed so that
the fossil fuel-generated energy consumption of
the buildings is reduced, as compared with such
energy consumption by a similar building in
fiscal year 2003 (as measured by Commercial
Buildings Energy Consumption Survey or
Residential Energy Consumption Survey data from
the Energy Information Agency), by the
percentage specified in the following table:
[
[Fiscal Year Percentage Reduction
2010................................ 55
2015................................ 65
2020................................ 80
2025................................ 90
2030................................ 100.
[(II) Upon petition by an agency subject to
this subparagraph, the Secretary may adjust the
applicable numeric requirement under subclause
(I) downward with respect to a specific
building, if the head of the agency designing
the building certifies in writing that meeting
such requirement would be technically
impracticable in light of the agency's
specified functional needs for that building
and the Secretary concurs with the agency's
conclusion. This subclause shall not apply to
the General Services Administration.
[(III) Sustainable design principles shall be
applied to the siting, design, and construction
of such buildings.]
(D) Certification for green buildings.--
(i) In general.--Not later than 90
days after the date of enactment of the
Energy Independence and Security Act of
2007, the Secretary, after reviewing
the findings of the Federal Director
under section 436(h) of that Act, in
consultation with the Administrator of
General Services, and in consultation
with the Secretary of Defense for
considerations relating to those
facilities under the custody and
control of the Department of Defense,
shall identify a certification system
and level for green buildings that the
Secretary determines to be the most
likely to encourage a comprehensive and
environmentally-sound approach to
certification of green buildings. The
identification of the certification
system and level shall be based on a
review of the Federal Director's
findings under section 436(h) of the
Energy Independence and Security Act of
2007 and the criteria specified in
clause (iii), shall identify the
highest level the Secretary determines
is appropriate above the minimum level
required for certification under the
system selected, and shall achieve
results at least comparable to the
system used by and highest level
referenced by the General Services
Administration as of the date of
enactment of the Energy Independence
and Security Act of 2007. Within 90
days of the completion of each study
required by clause (iv), the Secretary,
in consultation with the Administrator
of General Services, and in
consultation with the Secretary of
Defense for considerations relating to
those facilities under the custody and
control of the Department of Defense,
shall review and update the
certification system and level, taking
into account the conclusions of such
study.
[(ii) In establishing criteria for identifying major
renovations that are subject to the requirements of
this subparagraph, the Secretary shall take into
account the scope, degree, and types of renovations
that are likely to provide significant opportunities
for substantial improvements in energy efficiency.]
[(iii) In identifying]
(ii) Considerations._In identifying the green
building certification system and level, the Secretary
shall take into consideration--
(I) the ability and availability of assessors
and auditors to independently verify the
criteria and measurement of metrics at the
scale necessary to implement this subparagraph;
(II) the ability of the applicable
certification organization to collect and
reflect public comment;
(III) the ability of the standard to be
developed and revised through a consensus-based
process;
(IV) an evaluation of the robustness of the
criteria for a high-performance green building,
which shall give credit for promoting--
(aa) efficient and sustainable use of
water, energy, and other natural
resources;
(bb) use of renewable energy sources;
(cc) improved indoor environmental
quality through enhanced indoor air
quality, thermal comfort, acoustics,
day lighting, pollutant source control,
and use of low-emission materials and
building system controls; and
(dd) such other criteria as the
Secretary determines to be appropriate;
and
(V) national recognition within the building
industry.
[(iv) At least once]
(iii) Study._At least once every 5 years, and in
accordance with section 436 of the Energy Independence
and Security Act of 2007, the Administrator of General
Services shall conduct a study to evaluate and compare
available third-party green building certification
systems and levels, taking into account the criteria
listed in [clause (iii)] clause (ii).
[(v) The Secretary may]
(iv) Internal certification processes._The Secretary
may by rule allow Federal agencies to develop internal
certification processes, using certified professionals,
in lieu of certification by the certification entity
identified under [clause (i)(III)] clause (i). The
Secretary shall include in any such rule guidelines to
ensure that the certification process results in
buildings meeting the applicable certification system
and level identified under [clause (i)(III)] clause
(i). An agency employing an internal certification
process must continue to obtain external certification
by the certification entity identified under [clause
(i)(III)] clause (i) for at least 5 percent of the
total number of buildings certified annually by the
agency.
[(vi) With respect]
(v) Privatized military housing._With respect to
privatized military housing, the Secretary of Defense,
after consultation with the Secretary may, through
rulemaking, [develop alternative criteria to those
established by subclauses (I) and (III) of clause (i)
that achieve an equivalent result in terms of energy
savings, sustainable design, and] develop alternative
certification systems and levels than the systems and
levels identified under clause (i) that achieve an
equivalent result in terms of green building
performance.
[(vii) In addition to]
(vi) 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.
(b) Report on Comparative Standards.--The Secretary shall
identify and describe, in the report required under section
308, the basis for any substantive difference between the
Federal building energy standards established under this
section (including differences in treatment of energy
efficiency and renewable energy) and the appropriate [voluntary
building energy code] model building energy code.
[(c) Periodic Review.--The Secretary shall periodically, but
not less than once every 5 years, review the Federal building
energy standards established under this section and shall, if
significant energy savings would result, upgrade such standards
to include all new energy efficiency and renewable energy
measures that are technologically feasible and economically
justified.
[(d) Interim Standards.--Interim energy performance standards
for new Federal buildings issued by the Secretary under this
title as it existed before the date of the enactment of the
Energy Policy Act of 1992 shall remain in effect until the
standards established under subsection (a) become effective.]
(c) Periodic Review.--The Secretary shall--
(1) 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. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES.
[(a) In General.--Not later than 1 year after the date of the
enactment of the Energy Policy Act of 1992, the Secretary,
after consulting with the Secretary of Housing and Urban
Development, the Secretary of Veterans Affairs, other
appropriate Federal agencies, CABO, ASHRAE, the National
Conference of States on Building Codes and Standards, and any
other appropriate building codes and standards organization,
shall support the upgrading of voluntary building energy codes
for new residential and commercial buildings. Such support
shall include--
[(1) a compilation of data and other information
regarding building energy efficiency standards and
codes in the possession of the Federal Government,
State and local governments, and industry
organizations;
[(2) assistance in improving the technical basis for
such standards and codes;
[(3) assistance in determining the cost-effectiveness
and the technical feasibility of the energy efficiency
measures included in such standards and codes; and
[(4) assistance in identifying appropriate measures
with regard to radon and other indoor air pollutants.
[(b) Review.--The Secretary shall periodically review the
technical and economic basis of voluntary building energy codes
and, based upon ongoing research activities--
[(1) recommend amendments to such codes including
measures with regard to radon and other indoor air
pollutants;
[(2) seek adoption of all technologically feasible
and economically justified energy efficiency measures;
and
[(3) otherwise participate in any industry process
for review and modification of such codes.]
SEC. 307. SUPPORT FOR MODEL BUILDING ENERGY CODES.
(a) In General.--The Secretary shall provide technical
assistance, as described in subsection (c), for updating of
model building energy codes.
(b) Targets.--
(1) In general.--The Secretary shall provide
technical assistance, for updating the model building
energy codes.
(2) Targets.--
(A) In general.--The Secretary shall provide
technical assistance to States, Indian tribes,
local governments, nationally recognized code
and standards developers, and other interested
parties for updating of model building energy
codes by establishing one or more aggregate
energy savings targets through rulemaking in
accordance with section 553 of title 5, United
States Code, to achieve the purposes of this
section.
(B) Separate targets.--Separate targets may
be established for commercial and residential
buildings.
(C) Baselines.--The baseline for updating
model building energy codes shall be the 2009
IECC for residential buildings and ASHRAE
Standard 90.1-2010 for commercial buildings.
(D) Specific years.--
(i) In general.--Targets for specific
years shall be established and revised
by the Secretary through rulemaking in
accordance with section 553 of title 5,
United States Code, and coordinated
with nationally recognized code and
standards developers at a level that--
(I) is at the maximum level
of energy efficiency that is
technically feasible and cost
effective, while accounting for
the economic considerations
under paragraph (4); and
(II) 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.
(E) 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) for any indirect
economic effect on small entities that is
reasonably foreseeable and a result of such
rule.
(3) Appliance standards and other factors affecting
building energy use.--In establishing energy savings
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 and water
heating systems;
(D) building management systems and smart
grid technologies to reduce energy use; and
(E) other technologies, practices, and
building systems regarding building plug load
and other energy uses.
In developing and adjusting the targets, the Secretary
shall use climate zone weighted averages for equipment
efficiency for heating, cooling, ventilation, and water
heating systems, using equipment that is actually
installed.
(4) Economic considerations.--In establishing and
revising energy savings 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, by conducting a return
on investment analysis, using a simple payback
methodology over a 3-, 5-, and 7-year period. The
Secretary shall not propose or provide technical or
financial assistance for any code, provision in the
code, or energy target, or amendment thereto, that has
a payback greater than 10 years.
(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) Technical assistance.--The assistance shall
include, as requested by the organizations, technical
assistance in--
(A) evaluating the energy savings of building
energy codes;
(B) assessing the economic considerations,
under subsection (b)(4), of code or standards
proposals or revisions;
(C) building energy analysis and design
tools;
(D) energy simulation models;
(E) building demonstrations;
(F) 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;
(G) developing a performance-based pathway
for compliance;
(H) developing model building energy codes by
Indian tribes in accordance with tribal law;
and
(I) code development meetings, including
through direct Federal employee participation
in committee meetings, hearings and online
communication, voting, and presenting research
and technical or economic analyses during such
meetings.
(3) Exclusion.--Except as provided in paragraph
(2)(I), for purposes of this section, ``technical
assistance'' shall not include actions that promote or
discourage the adoption of a particular building energy
code, code provision, or energy savings target.
(4) Information quality and transparency.--For
purposes of this section, information provided by the
Secretary, attendant to development of any energy
savings targets, is influential information and shall
satisfy the guidelines established by the Office of
Management and Budget and published at 67 Federal
Register 8,452 (Feb. 22, 2002).
(d) Amendment Proposals.--
(1) In general.--The Secretary may submit timely
model building energy code amendment proposals that are
technically feasible, cost-effective, and technology-
neutral 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).
(2) Process and factors.--All amendment proposals
submitted by the Secretary shall be published in the
Federal Register and made available on the Department
of Energy website 90 days prior to any submittal to a
code development body, and shall be subject to a public
comment period of not less than 60 days. Information
provided by the Secretary, attendant to submission of
any amendment proposals, is influential information and
shall satisfy the guidelines established by the Office
of Management and Budget and published at 67 Federal
Register 8,452 (Feb. 22, 2002). When calculating the
costs and benefits of an amendment, the Secretary shall
use climate zone weighted averages for equipment
efficiency for heating, cooling, ventilation, and water
heating systems, using equipment that is actually
installed.
(e) 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.
(f) Methodology Development.--The Secretary shall establish a
methodology for evaluating cost effectiveness of energy code
changes in multifamily buildings that incorporates economic
parameters representative of typical multifamily buildings.
(g) 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--
(A) improves energy efficiency in buildings
compared to the existing IECC or ASHRAE
Standard 90.1, as applicable;
(B) meets the applicable targets under
subsection (b)(2); and
(C) is technically feasible and cost-
effective.
(2) Codes or standards not meeting criteria.--
(A) In general.--If the Secretary makes a
preliminary determination under paragraph
(1)(B) that a revised IECC or ASHRAE Standard
90.1 does not meet the targets established
under subsection (b)(2), is not technically
feasible, or is not cost-effective, the
Secretary may at the same time provide
technical assistance, as described in
subsection (c), to the International Code
Council or ASHRAE, as applicable, with proposed
changes that would result in a model building
energy code or standard that meets the
criteria, and with supporting evidence.
Proposed changes submitted by the Secretary
shall be published in the Federal Register and
made available on the Department of Energy
website 90 days prior to any submittal to a
code development body, and shall be subject to
a public comment period of not less than 60
days. Information provided by the Secretary,
attendant to submission of any amendment
proposals, is influential information and shall
satisfy the guidelines established by the
Office of Management and Budget and published
at 67 Federal Register 8,452 (Feb. 22, 2002).
(B) Incorporation of changes.--
(i) In general.--On receipt of the
technical assistance, as described in
subsection (c), the International Code
Council or ASHRAE, as applicable,
shall, prior to the Secretary making a
final determination under paragraph
(1), have an additional 270 days to
accept or reject the proposed changes
made by the Secretary to the model
building energy code or standard.
(ii) Final determination.--A final
determination under paragraph (1) shall
be on the final revised model building
energy code or standard.
(h) Administration.--In carrying out this section, the
Secretary shall--
(1) publish notice of targets, amendment proposals
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;
(2) provide an opportunity for public comment on
targets and supporting analysis and determinations
under this section, in accordance with section 553 of
title 5, United States Code; and
(3) provide an opportunity for public comment on
amendment proposals.
(i) Voluntary Codes and Standards.--Not withstanding any
other provision of this section, any model building code or
standard established under this section shall not be binding on
a State, local government, or Indian tribe as a matter of
Federal law.
* * * * * * *
----------
ENERGY POLICY AND CONSERVATION ACT
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act
may be cited as the ``Energy Policy and Conservation Act''.
TABLE OF CONTENTS
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
* * * * * * *
Sec. 324B. WaterSense.
* * * * * * *
[Part I--Off-Highway Motor Vehicles
[Sec. 385. Off-Highway motor vehicle conservation study.]
* * * * * * *
TITLE III--IMPROVING ENERGY EFFICIENCY
* * * * * * *
Part B--Energy Conservation Program for Consumer Products Other Than
Automobiles
* * * * * * *
coverage
Sec. 322. (a) In General.--The following consumer products,
excluding those consumer products designed solely for use in
recreational vehicles and other mobile equipment, are covered
products:
(1) Refrigerators, refrigerator-freezers, and
freezers which can be operated by alternating current
electricity, excluding--
(A) any type designed to be used without
doors; and
(B) any type which does not include a
compressor and condenser unit as an integral
part of the cabinet assembly.
(2) Room air conditioners.
(3) Central air conditioners and central air
conditioning heat pumps.
(4) Water heaters.
(5) Furnaces.
(6) Dishwashers.
(7) Clothes washers.
(8) Clothes dryers.
(9) Direct heating equipment.
(10) Kitchen ranges and ovens.
(11) Pool heaters.
(12) Television sets.
(13) Fluorescent lamp ballasts.
(14) General service fluorescent lamps, general
service incandescent lamps, and incandescent reflector
lamps.
(15) Showerheads, except safety shower showerheads.
(16) Faucets.
(17) Water closets.
(18) Urinals.
(19) Metal halide lamp fixtures.
(20) Any other type of consumer product which the
Secretary classifies as a covered product under
subsection (b).
(b) Special Classification of Consumer Product.--(1) The
Secretary may classify a type of consumer product as a covered
product if he determines that--
(A) classifying products of such type as covered
products is necessary or appropriate to carry out the
purposes of this Act, and
(B) average annual per-household energy use by
products of such type is likely to exceed 100 kilowatt-
hours (or its Btu equivalent) per year.
(2) For purposes of this subsection:
(A) The term ``average annual per-household energy
use with respect to a type of product'' means the
estimated aggregate annual energy use (in kilowatt-
hours or the Btu equivalent) of consumer products of
such type which are used by households in the United
States, divided by the number of such households which
use products of such type.
(B) The Btu equivalent of one kilowatt-hour is 3,412
British thermal units.
(C) The term ``household'' shall be defined under
rules of the Secretary.
(c) Modifying Definitions of Covered Products.--
(1) In general.--For any covered product for which a
definition is provided in section 321, the Secretary
may, by rule, unless prohibited herein, modify such
definition in order to--
(A) address significant changes in the
product or the market occurring since the
definition was established; and
(B) better enable improvements in the energy
efficiency of the product as part of an energy
using system.
(2) Antibacksliding exemption.--Section 325(o)(1)
shall not apply to adjustments to covered product
definitions made pursuant to this subsection.
(3) Procedure for modifying definition.--
(A) In general.--Notice of any adjustment to
the definition of a covered product and an
explanation of the reasons therefor shall be
published in the Federal Register and
opportunity provided for public comment.
(B) Consensus required.--Any amendment to the
definition of a covered product under this
subsection must have consensus support, as
reflected in--
(i) the outcome of negotiations
conducted in accordance with the
subchapter III of chapter 5 of title 5,
United States Code (commonly known as
the ``Negotiated Rulemaking Act of
1990''); or
(ii) the Secretary's receipt of a
statement that is submitted jointly by
interested persons that are fairly
representative of relevant points of
view (including representatives of
manufacturers of covered products,
States, and efficiency advocates), as
determined by the Secretary, which
contains a recommended modified
definition for a covered product.
(4) Effect of a modified definition.--
(A) In general.--For any type or class of
consumer product which becomes a covered
product pursuant to this subsection--
(i) the Secretary may establish test
procedures for such type or class of
covered product pursuant to section 323
and energy conservation standards
pursuant to section 325(l);
(ii) the Commission may prescribe
labeling rules pursuant to section 324
if the Commission determines that
labeling in accordance with that
section is technologically and
economically feasible and likely to
assist consumers in making purchasing
decisions;
(iii) section 327 shall begin to
apply to such type or class of covered
product in accordance with section
325(ii)(1); and
(iv) standards previously promulgated
under section 325 shall not apply to
such type or class of product.
(B) Applicability.--For any type or class of
consumer product which ceases to be a covered
product pursuant to this subsection, the
provisions of this part shall no longer apply
to the type or class of consumer product.
* * * * * * *
labeling
Sec. 324. (a) In General.--(1) The Commission shall prescribe
labeling rules under this section applicable to all covered
products of each of the types specified in paragraphs (1), (2),
(4), (6), and (8) through (12) of section 322(a), except to the
extent that, with respect to any such type (or class thereof),
the Commission determines under the second sentence of
subsection (b)(5) that labeling in accordance with this section
is not technologically or economically feasible.
(2)(A) The Commission shall prescribe labeling rules under
this section applicable to all covered products of each of the
types specified in paragraphs (3), (5), and (7) of section
322(a), except to the extent that with respect to any such type
(or class thereof), the Commission determines under the second
sentence of subsection (b)(5) that labeling in accordance with
this section is not technologically or economically feasible or
is not likely to assist consumers in making purchasing
decisions.
(B) The Commission shall prescribe labeling rules under this
section applicable to the covered product specified in
paragraph (13) of section 322(a) and to which standards are
applicable under section 325. Such rules shall provide that the
labeling of any fluorescent lamp ballast manufactured on or
after January 1, 1990, will indicate conspicuously, in a manner
prescribed by the Commission under subsection (b) by July 1,
1989, a capital letter ``E'' printed within a circle on the
ballast and on the packaging of the ballast or of the luminaire
into which the ballast has been incorporated.
(C) Metal halide lamp fixtures.--
(i) In general.--The Commission shall issue
labeling rules under this section applicable to
the covered product specified in section
322(a)(19) and to which standards are
applicable under section 325.
(ii) Labeling.--The rules shall provide that
the labeling of any metal halide lamp fixture
manufactured on or after the later of January
1, 2009, or the date that is 270 days after the
date of enactment of this subparagraph, shall
indicate conspicuously, in a manner prescribed
by the Commission under subsection (b) by July
1, 2008, a capital letter ``E'' printed within
a circle on the packaging of the fixture, and
on the ballast contained in the fixture.
(D)(i) Not later than 18 months after the date of the
enactment of the Energy Policy Act of 1992, the Commission
shall prescribe labeling rules under this section applicable to
general service fluorescent lamps, medium base compact
fluorescent lamps, and general service incandescent lamps.
Except as provided in clause (ii), such rules shall provide
that the labeling of any general service fluorescent lamp,
medium base compact fluorescent lamp, and general service
incandescent lamp manufactured after the 12-month period
beginning on the date of the publication of such rule shall
indicate conspicuously on the packaging of the lamp, in a
manner prescribed by the Commission under subsection (b), such
information as the Commission deems necessary to enable
consumers to select the most energy efficient lamps which meet
their requirements. Labeling information for incandescent lamps
shall be based on performance when operated at 120 volts input,
regardless of the rated lamp voltage.
(ii) If the Secretary determines that compliance with the
standards specified in section 325(i) for any lamp will result
in the discontinuance of the manufacture of such lamp, the
Commission may exempt such lamp from the labeling rules
prescribed under clause (i).
(iii) Rulemaking to consider effectiveness of lamp
labeling.--
(I) In general.--Not later than 1 year after
the date of enactment of this clause, the
Commission shall initiate a rulemaking to
consider--
(aa) the effectiveness of current
lamp labeling for power levels or
watts, light output or lumens, and lamp
lifetime; and
(bb) alternative labeling approaches
that will help consumers to understand
new high-efficiency lamp products and
to base the purchase decisions of the
consumers on the most appropriate
source that meets the requirements of
the consumers for lighting level, light
quality, lamp lifetime, and total
lifecycle cost.
(II) Completion.--The Commission shall--
(aa) complete the rulemaking not
later than the date that is 30 months
after the date of enactment of this
clause; and
(bb) consider reopening the
rulemaking not later than 180 days
before the effective dates of the
standards for general service
incandescent lamps established under
section 325(i)(1)(A), if the Commission
determines that further labeling
changes are needed to help consumers
understand lamp alternatives.
(E)(i) Not later than one year after the date of the
enactment of the Energy Policy Act of 1992, the Commission
shall prescribe labeling rules under this section for
showerheads and faucets to which standards are applicable under
subsection (j) of section 325. Such rules shall provide that
the labeling of any showerhead or faucet manufactured after the
12-month period beginning on the date of the publication of
such rule shall be consistent with the marking and labeling
requirements of ASME A112.18.1M-1989, except that each
showerhead and flow restricting or controlling spout-end device
shall bear a permanent legible marking indicating the flow
rate, expressed in gallons per minute (gpm) or gallons per
cycle (gpc), and the flow rate value shall be the actual flow
rate or the maximum flow rate specified by the standards
established in subsection (j) of section 325.
(ii) If the marking and labeling requirements of ASME
A112.18.1M-1989 are revised at any time and approved by ANSI,
the Commission shall amend the labeling rules established
pursuant to clause (i) to be consistent with such revised ASME/
ANSI requirements unless such requirements are inconsistent
with the purposes of this Act or the requirement specified in
clause (i) requiring each showerhead and flow restricting or
controlling spout-end device to bear a permanent legible
marking indicating the flow rate of such product.
(F)(i) Not later than one year after the date of the
enactment of the Energy Policy Act of 1992, the Commission
shall prescribe labeling rules under this section for water
closets and urinals to which standards are applicable under
subsection (k) of section 325. Such rules shall provide that
the labeling of any water closet or urinal manufactured after
the 12-month period beginning on the date of the publication of
such rule shall be consistent with the marking and labeling
requirements of ASME A112.19.2M-1990, except that each fixture
(and flushometer valve associated with such fixture) shall bear
a permanent legible marking indicating the water use, expressed
in gallons per flush (gpf), and the water use value shall be
the actual water use or the maximum water use specified by the
standards established in subsection (k) of section 325.
(ii) If the marking and labeling requirements of ASME
A112.19.2M-1990 are revised at any time and approved by ANSI,
the Commission shall amend the labeling rules established
pursuant to clause (i) to be consistent with such revised ASME/
ANSI requirements unless such requirements are inconsistent
with the purposes of this Act or the requirement specified in
clause (i) requiring each fixture and flushometer valve to bear
a permanent legible marking indicating the water use of such
fixture or flushometer valve.
(iii) Any labeling rules prescribed under this subparagraph
before January 1, 1997, shall provide that, with respect to any
gravity tank-type white 2-piece toilet which has a water use
greater than 1.6 gallons per flush (gpf), any printed matter
distributed or displayed in connection with such product
(including packaging and point of sale material, catalog
material, and print advertising) shall include, in a
conspicuous manner, the words ``For Commercial Use Only''.
(G)(i) Not later than 90 days after the date of enactment of
this subparagraph, the Commission shall initiate a rulemaking
to consider--
(I) the effectiveness of the consumer products
labeling program in assisting consumers in making
purchasing decisions and improving energy efficiency;
and
(II) changes to the labeling rules (including
categorical labeling) that would improve the
effectiveness of consumer product labels.
(ii) Not later than 2 years after the date of enactment of
this subparagraph, the Commission shall complete the rulemaking
initiated under clause (i).
(H)(i) Not later than 18 months after the date of enactment
of this subparagraph, the Commission shall issue by rule, in
accordance with this section, labeling requirements for the
electricity used by ceiling fans to circulate air in a room.
(ii) The rule issued under clause (i) shall apply to products
manufactured after the later of--
(I) January 1, 2009; or
(II) the date that is 60 days after the final rule is
issued.
(I) Labeling requirements.--
(i) In general.--Subject to clauses (ii)
through (iv), not later than 18 months after
the date of issuance of applicable Department
of Energy testing procedures, the Commission,
in consultation with the Secretary and the
Administrator of the Environmental Protection
Agency (acting through the Energy Star
program), shall, by regulation, prescribe
labeling or other disclosure requirements for
the energy use of--
(I) televisions;
(II) personal computers;
(III) cable or satellite set-top
boxes;
(IV) stand-alone digital video
recorder boxes; and
(V) personal computer monitors.
(ii) Alternate testing procedures.--In the
absence of applicable testing procedures
described in clause (i) for products described
in subclauses (I) through (V) of that clause,
the Commission may, by regulation, prescribe
labeling or other disclosure requirements for a
consumer product category described in clause
(i) if the Commission--
(I) identifies adequate non-
Department of Energy testing procedures
for those products; and
(II) determines that labeling of, or
other disclosures relating to, those
products is likely to assist consumers
in making purchasing decisions.
(iii) Deadline and requirements for
labeling.--
(I) Deadline.--Not later than 18
months after the date of promulgation
of any requirements under clause (i) or
(ii), the Commission shall require
labeling of, or other disclosure
requirements for, electronic products
described in clause (i).
(II) Requirements.--The requirements
prescribed under clause (i) or (ii) may
include specific requirements for each
electronic product to be labeled with
respect to the placement, size, and
content of Energy Guide labels.
(iv) Determination of feasibility.--Clause
(i) or (ii) shall not apply in any case in
which the Commission determines that labeling
in accordance with this subsection--
(I) is not technologically or
economically feasible; or
(II) is not likely to assist
consumers in making purchasing
decisions.
(J) Smart grid capability on energy guide labels.--
(i) Rule.--Not later than 1 year after the
date of enactment of this subparagraph, the
Commission shall initiate a rulemaking to
consider making a special note in a prominent
manner on any Energy Guide label for any
product that includes Smart Grid capability
that--
(I) Smart Grid capability is a
feature of that product;
(II) the use and value of that
feature depend on the Smart Grid
capability of the utility system in
which the product is installed and the
active utilization of that feature by
the customer; and
(III) on a utility system with Smart
Grid capability, the use of the
product's Smart Grid capability could
reduce the customer's cost of the
product's annual operation as a result
of the incremental energy and
electricity cost savings that would
result from the customer taking full
advantage of such Smart Grid
capability.
(ii) Deadline.--Not later than 3 years after
the date of enactment of this subparagraph, the
Commission shall complete the rulemaking
initiated under clause (i).
(3) The Commission may prescribe a labeling rule under this
section applicable to covered products of a type specified in
paragraph (19) of section 322(a) (or a class thereof) if--
(A) the Commission or the Secretary has made a
determination with respect to such type (or class
thereof) that labeling in accordance with this section
will assist purchasers in making purchasing decisions,
(B) the Secretary has prescribed test procedures
under section 323(b)(1)(B) for such type (or class
thereof), and
(C) the Commission determines with respect to such
type (or class thereof) that application of labeling
rules under this section to such type (or class
thereof) is economically and technologically feasible.
(4) Any determination under this subsection shall be
published in the Federal Register.
(5)(A) For covered products described in subsections (u)
through (ff) of section 325, after a test procedure has been
prescribed under section 323, the Secretary or the Commission,
as appropriate, may prescribe, by rule, under this section
labeling requirements for the products.
(B) In the case of products to which TP-1 standards under
section 325(y) apply, labeling requirements shall be based on
the ``Standard for the Labeling of Distribution Transformer
Efficiency'' prescribed by the National Electrical
Manufacturers Association (NEMA TP-3) as in effect on the date
of enactment of this paragraph.
(C) In the case of dehumidifiers covered under section
325(dd), the Commission shall not require an ``Energy Guide''
label.
(6) Authority to include additional product
categories.--The Commission may, by regulation, require
labeling or other disclosures in accordance with this
subsection for any consumer product not specified in
this subsection or section 322 if the Commission
determines that labeling for the product is likely to
assist consumers in making purchasing decisions.
(b) Rules in Effect; New Rules.--(1)(A) Any labeling rule in
effect on the date of the enactment of the National Appliance
Energy Conservation Act of 1987 shall remain in effect until
amended, by rule, by the Commission.
(B) After the date of the enactment of the National Appliance
Energy Conservation Act of 1987 and not later than 30 days
after the date on which a proposed test procedure applicable to
a covered product of any of the types specified in paragraphs
(1) through (13), and paragraphs (15) through (19) of section
322(a) (or class thereof) is prescribed under section 323(b),
the Commission shall publish a proposed labeling rule
applicable to such type (or class thereof).
(2) The Commission shall afford interested persons an
opportunity to present written or oral data, views, and
comments with respect to the proposed labeling rules published
under paragraph (1). The period for such presentations shall
not be less than 45 days.
(3) Not earlier than 45 days nor later than 60 days after the
date on which test procedures are prescribed under section
323(b) with respect to covered products of any type (or class
thereof) specified in paragraphs (1) through (12) of section
322(a), the Commission shall prescribe labeling rules with
respect to covered products of such type (or class thereof).
Not earlier than 45 days after the date on which test
procedures are prescribed under section 323(b) with respect to
covered products of a type specified in paragraph (19) of
section 322(a), the Commission may prescribe labeling rules
with respect to covered products of such type (or class
thereof).
(4) A labeling rule prescribed under paragraph (3) shall take
effect not later than 3 months after the date of prescription
of such rule, except that such rules may take effect not later
than 6 months after such date of prescription if the Commission
determines that such extension is necessary to allow persons
subject to such rules adequate time to come into compliance
with such rules.
(5) The Commission may delay the publication of a proposed
labeling rule, or the prescription of a labeling rule, beyond
the dates specified in paragraph (1) or (3), if it determines
that it cannot publish proposed labeling rules or prescribe
labeling rules which meet the requirements of this section on
or prior to the date specified in the applicable paragraph and
publishes such determination in the Federal Register, together
with the reasons therefor. In any such case, it shall publish
proposed labeling rules or prescribe labeling rules for covered
products of such type (or class thereof) as soon as practicable
unless it determines (A) that labeling in accordance with this
section is not economically or technically feasible, or (B) in
the case of a type specified in paragraphs (3), (5), and (7) of
section 322(a), that labeling in accordance with this section
is not likely to assist consumers in purchasing decisions. Any
such determination shall be published in the Federal Register,
together with the reasons therefor. This paragraph shall not
apply to the prescription of a labeling rule with respect to
covered products of a type specified in paragraph (19) of
section 322(a).
(c) Content of Label.--(1) Subject to paragraph (6), a rule
prescribed under this section shall require that each covered
product in the type or class of covered products to which the
rule applies bear a label which discloses--
(A) the estimated annual operating cost of such
product (determined in accordance with test procedures
prescribed under section 323), except that if--
(i) the Secretary determines that disclosure
of estimated annual operating cost is not
technologically feasible, or
(ii) the Commission determines that such
disclosure is not likely to assist consumers in
making purchasing decisions or is not
economically feasible,
the Commission shall require disclosure of a different
useful measure of energy consumption (determined in
accordance with test procedures prescribed under
section 323); and
(B) information respecting the range of estimated
annual operating costs for covered products to which
the rule applies; except that if the Commission
requires disclosure under subparagraph (A) of a measure
of energy consumption different from estimated annual
operating cost, then the label shall disclose the range
of such measure of energy consumption of covered
products to which such rule applies.
(2) A rule under this section shall include the following:
(A) A description of the type or class of covered
products to which such rule applies.
(B) Subject to paragraph (6), information respecting
the range of estimated annual operating costs or other
useful measure of energy consumption (determined in
such manner as the rule may prescribe) for such type or
class of covered products.
(C) A description of the test procedures under
section 323 used in determining the estimated annual
operating costs or other measure of energy consumption
of the type or class of covered products.
(D) A prototype label and directions for displaying
such label.
(3) A rule under this section shall require that the label be
displayed in a manner that the Commission determines is likely
to assist consumers in making purchasing decisions and is
appropriate to carry out this part. The Commission may permit a
tag to be used in lieu of a label in any case in which the
Commission finds that a tag will carry out the purposes for
which the label was intended.
(4) A rule under this section applicable to a covered product
may require disclosure, in any printed matter displayed or
distributed at the point of sale of such product, of any
information which may be required under this section to be
disclosed on the label of such product. Requirements under this
paragraph shall not apply to any broadcast advertisement or any
advertisement in any newspaper, magazine, or other periodical.
(5) The Commission may require that a manufacturer of a
covered product to which a rule under this section applies--
(A) include on the label,
(B) separately attach to the product, or
(C) ship with the product,
additional information relating to energy consumption,
including instructions for the maintenance, use, or repair of
the covered product, if the Commission determines that such
additional information would assist consumers in making
purchasing decisions or in using such product, and that such
requirement would not be unduly burdensome to manufacturers.
(6) The Commission may delay the effective date of the
requirement specified in paragraph (1)(B) of this subsection
applicable to a type or class of covered product, insofar as it
requires the disclosure on the label of information respecting
range of measure of energy consumption, for not more than 12
months after the date on which the rule under this section is
first applicable to such type or class, if the Commission
determines that such information will not be available within
an adequate period of time before such date.
(7) Paragraphs (1), (2), (3), (5), and (6) of this subsection
shall not apply to the covered product specified in paragraphs
(13), (14), (15), (16), (17), and (18) of section 322(a).
(8) If a manufacturer of a covered product specified in
paragraph (15) or (17) of section 322(a) elects to provide a
label for such covered product conveying the estimated annual
operating cost of such product or the range of estimated annual
operating costs for the type or class of such product--
(A) such estimated cost or range of costs shall be
determined in accordance with test procedures
prescribed under section 323;
(B) the format of such label shall be in accordance
with a format prescribed by the Commission; and
(C) such label shall be displayed in a manner,
prescribed by the Commission, to be likely to assist
consumers in making purchasing decisions and
appropriate to carry out the purposes of this Act.
(9) Discretionary application.--The Commission may
apply paragraphs (1), (2), (3), (5), and (6) of this
subsection to the labeling of any product covered by
paragraph (2)(I) or (6) of subsection (a).
(d) Effective Date.--A rule under this section (or an
amendment thereto) shall not apply to any covered product the
manufacture of which was completed prior to the effective date
of such rule or amendment, as the case may be.
(e) Study of Certain Products.--The Secretary, in
consultation with the Commission, shall study consumer products
for which labeling rules under this section have not been
proposed, in order to determine (1) the aggregate energy
consumption of such products, and (2) whether the imposition of
labeling requirements under this section would be feasible and
useful to consumers in making purchasing decisions. The
Secretary shall include the results of such study in the annual
report under section 338.
(f) Consultation.--The Secretary and the Commission shall
consult with each other on a continuing basis as may be
necessary or appropriate to carry out their respective
responsibilities under this part. Before the Commission makes
any determination under subsection (a)(1), it shall obtain the
views of the Secretary and shall take such views into account
in making such determination.
(g) Other Authority of the Commission.--Until such time as
labeling rules under this section take effect with respect to a
type or class of covered product, this section shall not affect
any authority of the Commission under the Federal Trade
Commission Act to require labeling with respect to energy
consumption of such type or class of covered product.
ENERGY STAR PROGRAM
Sec. 324A. (a) In General.--There is established within the
Department of Energy and the Environmental Protection Agency a
voluntary program to identify and promote energy-efficient
products and buildings in order to reduce energy consumption,
improve energy security, and reduce pollution through voluntary
labeling of, or other forms of communication about, products
and buildings that meet the highest energy conservation
standards.
(b) Division of Responsibilities.--Responsibilities under the
program shall be divided between the Department of Energy and
the Environmental Protection Agency in accordance with the
terms of applicable agreements between those agencies.
(c) Duties.--The Administrator and the Secretary shall--
(1) promote Energy Star compliant technologies as the
preferred technologies in the marketplace for--
(A) achieving energy efficiency; and
(B) reducing pollution;
(2) work to enhance public awareness of the Energy
Star label, including by providing special outreach to
small businesses;
(3) preserve the integrity of the Energy Star label;
(4) regularly update Energy Star product criteria for
product categories;
(5) solicit comments from interested parties prior to
establishing or revising an Energy Star product
category, specification, or criterion (or prior to
effective dates for any such product category,
specification, or criterion);
(6) on adoption of a new or revised product category,
specification, or criterion, provide reasonable notice
to interested parties of any changes (including
effective dates) in product categories, specifications,
or criteria, along with--
(A) an explanation of the changes; and
(B) as appropriate, responses to comments
submitted by interested parties; and
(7) provide appropriate lead time (which shall be 270
days, unless the Agency or Department specifies
otherwise) prior to the applicable effective date for a
new or a significant revision to a product category,
specification, or criterion, taking into account the
timing requirements of the manufacturing, product
marketing, and distribution process for the specific
product addressed.
(d) Deadlines.--The Secretary shall establish new qualifying
levels--
(1) not later than January 1, 2006, for clothes
washers and dishwashers, effective beginning January 1,
2007; and
(2) not later than January 1, 2008, for clothes
washers, effective beginning July 1, 2009.
(e) No Warranty.--
(1) In general.--Any disclosure relating to
participation of a product in the Energy Star program
shall not create an express or implied warranty or give
rise to any private claims or rights of action under
State or Federal law relating to the disqualification
of that product from Energy Star if--
(A) the product has been certified by a
certification body recognized by the Energy
Star program;
(B) the Administrator has approved corrective
measures, including a determination of whether
or not consumer compensation is appropriate;
and
(C) the responsible party has fully complied
with all approved corrective measures.
(2) Construal.--Nothing in this subsection shall be
construed to require the Administrator to modify any
procedure or take any other action.
SEC. 324B. WATERSENSE.
(a) Watersense.--
(1) In general.--There is established within the
Environmental Protection Agency a voluntary program, to
be entitled ``WaterSense'', to identify water efficient
products, buildings, landscapes, facilities, processes,
and services that sensibly--
(A) reduce water use;
(B) reduce the strain on public and community
water systems and wastewater and stormwater
infrastructure;
(C) conserve energy used to pump, heat,
transport, and treat water; and
(D) preserve water resources for future
generations, through voluntary labeling of, or
other forms of communications about, products,
buildings, landscapes, facilities, processes,
and services while still meeting strict
performance criteria.
(2) Duties.--The Administrator, coordinating as
appropriate with the Secretary of Energy, shall--
(A) establish--
(i) a WaterSense label to be used for
items meeting the certification
criteria established in this section;
and
(ii) the procedure, including the
methods and means, by which an item may
be certified to display the WaterSense
label;
(B) conduct a public awareness education
campaign regarding the WaterSense label;
(C) preserve the integrity of the WaterSense
label by--
(i) establishing and maintaining
feasible performance criteria so that
products, buildings, landscapes,
facilities, processes, and services
labeled with the WaterSense label
perform as well or better than less
water-efficient counterparts;
(ii) overseeing WaterSense
certifications made by third parties;
(iii) using testing protocols, from
the appropriate, applicable, and
relevant consensus standards, for the
purpose of determining standards
compliance; and
(iv) auditing the use of the
WaterSense label in the marketplace and
preventing cases of misuse; and
(D) not more often than every six years,
review and, if appropriate, update WaterSense
criteria for the defined categories of water-
efficient product, building, landscape,
process, or service, including--
(i) providing reasonable notice to
interested parties and the public of
any such changes, including effective
dates, and an explanation of the
changes;
(ii) soliciting comments from
interested parties and the public prior
to any such changes;
(iii) as appropriate, responding to
comments submitted by interested
parties and the public; and
(iv) providing an appropriate
transition time prior to the applicable
effective date of any such changes,
taking into account the timing
necessary for the manufacture,
marketing, training, and distribution
of the specific water-efficient
product, building, landscape, process,
or service category being addressed.
(b) Use of Science.--In carrying out this section, and, to
the degree that an agency action is based on science, the
Administrator shall use--
(1) the best available peer-reviewed science and
supporting studies conducted in accordance with sound
and objective scientific practices; and
(2) data collected by accepted methods or best
available methods (if the reliability of the method and
the nature of the decision justify use of the data).
(c) Distinction of Authorities.--In setting or maintaining
standards for Energy Star pursuant to section 324A, and
WaterSense under this section, the Secretary and Administrator
shall coordinate to prevent duplicative or conflicting
requirements among the respective programs.
(d) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Environmental Protection
Agency.
(2) Feasible.--The term ``feasible'' means feasible
with the use of the best technology, treatment
techniques, and other means that the Administrator
finds, after examination for efficacy under field
conditions and not solely under laboratory conditions,
are available (taking cost into consideration).
(3) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(4) Water-efficient product, building, landscape,
process, or service.--The term ``water-efficient
product, building, landscape, process, or service''
means a product, building, landscape, process, or
service for a residence or a commercial or
institutional building, or its landscape, that is rated
for water efficiency and performance, the covered
categories of which are--
(A) irrigation technologies and services;
(B) point-of-use water treatment devices;
(C) plumbing products;
(D) reuse and recycling technologies;
(E) landscaping and gardening products,
including moisture control or water enhancing
technologies;
(F) xeriscaping and other landscape
conversions that reduce water use; and
(G) new water efficient homes certified under
the WaterSense program.
energy conservation standards
Sec. 325. (a) Purposes.--The purposes of this section are
to--
(1) provide Federal energy conservation standards
applicable to covered products; and
(2) authorize the Secretary to prescribe amended or
new energy conservation standards for each type (or
class) of covered product.
(b) Standards for Refrigerators, Refrigerator-Freezers, and
Freezers.--(1) The following is the maximum energy use allowed
in kilowatt hours per year for the following products (other
than those described in paragraph (2)) manufactured on or after
January 1, 1990:
Energy Standards
Equations
Refrigerators and Refrigerator-Freezers with manual
defrost............................................. 16.3 AV+316
Refrigerator-Freezers--partial automatic defrost........ 21.8 AV+429
Refrigerator-Freezers--automatic defrost with:
Top mounted freezer without ice..................... 23.5 AV+471
Side mounted freezer without ice.................... 27.7 AV+488
Bottom mounted freezer without ice.................. 27.7 AV+488
Top mounted freezer with through the door ice
service........................................... 26.4 AV+535
Side mounted freezer with through the door ice...... 30.9 AV+547
Upright Freezers with:
Manual defrost...................................... 10.9 AV+422
Automatic defrost................................... 16.0 AV+623
Chest Freezers and all other freezers................... 14.8 AV+223
(2) The standards described in paragraph (1) do not apply to
refrigerators and refrigerator-freezers with total refrigerated
volume exceeding 39 cubic feet or freezers with total
refrigerated volume exceeding 30 cubic feet.
(3)(A)(i) The Secretary shall publish a proposed rule, no
later than July 1, 1988, to determine if the standards
established by paragraph (1) should be amended. The Secretary
shall publish a final rule no later than July 1, 1989, which
shall contain such amendment, if any, and provide that the
amendment shall apply to products manufactured on or after
January 1, 1993. If such a final rule is not published before
January 1, 1990, any amendment of such standards shall apply to
products manufactured on or after January 1, 1995. Nothing in
this subsection provides any justification or defense for a
failure by the Secretary to comply with the nondiscretionary
duty to publish final rules by the dates stated in this
paragraph.
(ii)(I) If the Secretary does not publish a final rule before
January 1, 1990, relating to the revision of the energy
conservation standards for refrigerators, refrigerator-freezers
and freezers, the regulations which established standards for
such products and were promulgated by the California Energy
Commission on December 14, 1984, to be effective January 1,
1992 (or any amendments to such standards that are not more
stringent than the standards in the original regulations),
shall apply in California to such products, effective beginning
January 1, 1993, and shall not be preempted after such
effective date by any energy conservation standard established
in this section or prescribed, on or after January 1, 1990,
under this section.
(II) If the Secretary does not publish a final rule before
January 1, 1992, relating to the revision of the energy
conservation standards for refrigerators, refrigerator-freezers
and freezers, State regulations which apply to such products
manufactured on or after January 1, 1995, shall apply to such
products until the effective date of a rule issued under this
section with respect to such products.
(B) After the publication of a final rule under subparagraph
(A), the Secretary shall publish a final rule no later than
five years after the date of publication of the previous final
rule. The Secretary shall determine in such rule whether to
amend the standards in effect for the products described in
paragraph (1).
(C) Any amendment prescribed under subparagraph (B) shall
apply to products manufactured after a date which is five years
after--
(i) the effective date of the previous amendment; or
(ii) if the previous final rule did not amend the
standards, the earliest date by which the previous
amendment could have been effective;
except that in no case may any amended standard apply to
products manufactured within three years after publication of
the final rule establishing such amended standard.
(4) Refrigerators and freezers manufactured on or
after january 1, 2014.--
(A) In general.--Not later than December 31,
2010, the Secretary shall publish a final rule
determining whether to amend the standards in
effect for refrigerators, refrigerator-
freezers, and freezers manufactured on or after
January 1, 2014.
(B) Amended standards.--The final rule shall
contain any amended standards.
(c) Standards for Room Air Conditioners.--(1) The energy
efficiency ratio of room air conditioners shall be not less
than the following for products manufactured on or after
January 1, 1990:
Product Class: Ratio
Without Reverse Cycle and With Louvered Sides:
Less than 6,000 Btu..................................... 8.0
6,000 to 7,999 Btu...................................... 8.5
8,000 to 13,999 Btu..................................... 9.0
14,000 to 19,999 Btu.................................... 8.8
20,000 and more Btu..................................... 8.2
Without Reverse Cycle and Without Louvered Sides:
Less than 6,000 Btu..................................... 8.0
6,000 to 7,999 Btu...................................... 8.5
8,000 to 13,999 Btu..................................... 8.5
14,000 to 19,999 Btu.................................... 8.5
20,000 and more Btu..................................... 8.2
With Reverse Cycle and With Louvered Sides................ 8.5
With Reverse Cycle, Without Louvered Sides................ 8.0
(2)(A) The Secretary shall publish a final rule no later than
January 1, 1992, to determine if the standards established
under paragraph (1) should be amended. Such rule shall contain
such amendment, if any, and provide that the amendment shall
apply to products manufactured on or after January 1, 1995.
(B) After January 1, 1992, the Secretary shall publish a
final rule no later than five years after the date of
publication of a previous final rule. The Secretary shall
determine in such rule whether to amend the standards in effect
for room air conditioners.
(C) Any amendment prescribed under subparagraph (B) shall
apply to products manufactured after a date which is five years
after--
(i) the effective date of the previous amendment; or
(ii) if the previous final rule did not amend the
standards, the earliest date by which a previous
amendment could have been effective;
except that in no case may any amended standard apply to
products manufactured within three years after publication of
the final rule establishing such amended standard.
(d) Standards for Central Air Conditioners and Heat Pumps.--
(1) The seasonal energy efficiency ratio of central air
conditioners and central air conditioning heat pumps shall be
not less than the following:
(A) Split Systems: 10.0 for products manufactured on
or after January 1, 1992.
(B) Single Package Systems: 9.7 for products
manufactured on or after January 1, 1993.
(2) The heating seasonal performance factor of central air
conditioning heat pumps shall be not less than the following:
(A) Split Systems: 6.8 for products manufactured on
or after January 1, 1992.
(B) Single Package Systems: 6.6 for products
manufactured on or after January 1, 1993.
(3)(A) The Secretary shall publish a final rule no later than
January 1, 1994, to determine whether the standards established
under paragraph (1) should be amended. Such rule shall contain
such amendment, if any, and provide that the amendment shall
apply to products manufactured on or after January 1, 1999. The
Secretary shall publish a final rule no later than January 1,
1994, to determine whether the standards established under
paragraph (2) shall be amended. Such rule shall contain such
amendment, if any, and provide that the amendment shall apply
to products manufactured on or after January 1, 2002.
(B) The Secretary shall publish a final rule after January 1,
1994, and no later than January 1, 2001, to determine whether
the standards in effect for central air conditioners and
central air conditioning heat pumps should be amended. Such
rule shall provide that any amendment shall apply to products
manufactured on or after January 1, 2006.
(4) Standards for through-the-wall central air
conditioners, through-the-wall central air conditioning
heat pumps, and small duct, high velocity systems.--
(A) Definitions.--In this paragraph:
(i) Small duct, high velocity
system.--The term ``small duct, high
velocity system'' means a heating and
cooling product that contains a blower
and indoor coil combination that--
(I) is designed for, and
produces, at least 1.2 inches
of external static pressure
when operated at the certified
air volume rate of 220-350 CFM
per rated ton of cooling; and
(II) when applied in the
field, uses high velocity room
outlets generally greater than
1,000 fpm that have less than
6.0 square inches of free area.
(ii) Through-the-wall central air
conditioner; through-the-wall central
air conditioning heat pump.--The terms
``through-the-wall central air
conditioner'' and ``through-the-wall
central air conditioning heat pump''
mean a central air conditioner or heat
pump, respectively, that is designed to
be installed totally or partially
within a fixed-size opening in an
exterior wall, and--
(I) is not weatherized;
(II) is clearly and
permanently marked for
installation only through an
exterior wall;
(III) has a rated cooling
capacity no greater than 30,000
Btu/hr;
(IV) exchanges all of its
outdoor air across a single
surface of the equipment
cabinet; and
(V) has a combined outdoor
air exchange area of less than
800 square inches (split
systems) or less than 1,210
square inches (single packaged
systems) as measured on the
surface area described in
subclause (IV).
(iii) Revision.--The Secretary may
revise the definitions contained in
this subparagraph through publication
of a final rule.
(B) Small-duct high-velocity systems.--
(i) Seasonal energy efficiency
ratio.--The seasonal energy efficiency
ratio for small-duct high-velocity
systems shall be not less than--
(I) 11.00 for products
manufactured on or after
January 23, 2006; and
(II) 12.00 for products
manufactured on or after
January 1, 2015.
(ii) Heating seasonal performance
factor.--The heating seasonal
performance factor for small-duct high-
velocity systems shall be not less
than--
(I) 6.8 for products
manufactured on or after
January 23, 2006; and
(II) 7.2 for products
manufactured on or after
January 1, 2015.
(C) Subsequent rulemakings.--The Secretary
shall conduct subsequent rulemakings for
through-the-wall central air conditioners,
through-the-wall central air conditioning heat
pumps, and small duct, high velocity systems as
part of any rulemaking under this section used
to review or revise standards for other central
air conditioners and heat pumps.
(e) Standards for Water Heaters; Pool Heaters; Direct Heating
Equipment.--(1) The energy factor of water heaters shall be not
less than the following for products manufactured on or after
January 1, 1990:
(A) Gas Water Heater: .62-(.0019 x Rated
Storage Volume in
gallons)
(B) Oil Water Heater: .59-(.0019 x Rated
Storage Volume in
gallons)
(C) Electric Water Heater: .95-(.00132 x Rated
Storage Volume in
gallons)
(2) The thermal efficiency of pool heaters manufactured on or
after January 1, 1990, shall not be less than 78 percent.
(3) The efficiencies of gas direct heating equipment
manufactured on or after January 1, 1990, shall be not less
than the following:
Wall
Fan type
Up to 42,000 Btu/hour........................... 73% AFUE
Over 42,000 Btu/hour............................ 74% AFUE
Gravity type
Up to 10,000 Btu/hour........................... 59% AFUE
Over 10,000 Btu/hour up to 12,000 Btu/hour...... 60% AFUE
Over 12,000 Btu/hour up to 15,000 Btu/hour...... 61% AFUE
Over 15,000 Btu/hour up to 19,000 Btu/hour...... 62% AFUE
Over 19,000 Btu/hour up to 27,000 Btu/hour...... 63% AFUE
Over 27,000 Btu/hour up to 46,000 Btu/hour...... 64% AFUE
Over 46,000 Btu/hour............................ 65% AFUE
Floor
Up to 37,000 Btu/hour........................... 56% AFUE
Over 37,000 Btu/hour............................ 57% AFUE
Room
Up to 18,000 Btu/hour........................... 57% AFUE
Over 18,000 Btu/hour up to 20,000 Btu/hour...... 58% AFUE
Over 20,000 Btu/hour up to 27,000 Btu/hour...... 63% AFUE
Over 27,000 Btu/hour up to 46,000 Btu/hour...... 64% AFUE
Over 46,000 Btu/hour............................ 65% AFUE
(4)(A) The Secretary shall publish final rules no later than
January 1, 1992, to determine whether the standards established
by paragraph (1), (2), or (3) for water heaters, pool heaters,
and direct heating equipment should be amended. Such rule shall
provide that any amendment shall apply to products manufactured
on or after January 1, 1995.
(B) The Secretary shall publish a final rule no later than
January 1, 2000, to determine whether standards in effect for
such products should be amended. Such rule shall provide that
any such amendment shall apply to products manufactured on or
after January 1, 2005.
(5) Uniform efficiency descriptor for covered water
heaters.--
(A) Definitions.--In this paragraph:
(i) Covered water heater.--The term
``covered water heater'' means--
(I) a water heater; and
(II) a storage water heater,
instantaneous water heater, and
unfired hot water storage tank
(as defined in section 340).
(ii) Final rule.--The term ``final
rule'' means the final rule published
under this paragraph.
(B) Publication of final rule.--Not later
than 1 year after the date of enactment of this
paragraph, the Secretary shall publish a final
rule that establishes a uniform efficiency
descriptor and accompanying test methods for
covered water heaters.
(C) Purpose.--The purpose of the final rule
shall be to replace with a uniform efficiency
descriptor--
(i) the energy factor descriptor for
water heaters established under this
subsection; and
(ii) the thermal efficiency and
standby loss descriptors for storage
water heaters, instantaneous water
heaters, and unfired water storage
tanks established under section
342(a)(5).
(D) Effect of final rule.--
(i) In general.--Notwithstanding any
other provision of this title,
effective beginning on the effective
date of the final rule, the efficiency
standard for covered water heaters
shall be denominated according to the
efficiency descriptor established by
the final rule.
(ii) Effective date.--The final rule
shall take effect 1 year after the date
of publication of the final rule under
subparagraph (B).
(E) Conversion factor.--
(i) In general.--The Secretary shall
develop a mathematical conversion
factor for converting the measurement
of efficiency for covered water heaters
from the test procedures in effect on
the date of enactment of this paragraph
to the new energy descriptor
established under the final rule.
(ii) Application.--The conversion
factor shall apply to models of covered
water heaters affected by the final
rule and tested prior to the effective
date of the final rule.
(iii) Effect on efficiency
requirements.--The conversion factor
shall not affect the minimum efficiency
requirements for covered water heaters
otherwise established under this title.
(iv) Use.--During the period
described in clause (v), a manufacturer
may apply the conversion factor
established by the Secretary to rerate
existing models of covered water
heaters that are in existence prior to
the effective date of the rule
described in clause (v)(II) to comply
with the new efficiency descriptor.
(v) Period.--Clause (iv) shall apply
during the period--
(I) beginning on the date of
publication of the conversion
factor in the Federal Register;
and
(II) ending on the later of 1
year after the date of
publication of the conversion
factor, or December 31, 2015.
(F) Exclusions.--The final rule may exclude a
specific category of covered water heaters from
the uniform efficiency descriptor established
under this paragraph if the Secretary
determines that the category of water heaters--
(i) does not have a residential use
and can be clearly described in the
final rule; and
(ii) are effectively rated using the
thermal efficiency and standby loss
descriptors applied (as of the date of
enactment of this paragraph) to the
category under section 342(a)(5).
(G) Options.--The descriptor set by the final
rule may be--
(i) a revised version of the energy
factor descriptor in use as of the date
of enactment of this paragraph;
(ii) the thermal efficiency and
standby loss descriptors in use as of
that date;
(iii) a revised version of the
thermal efficiency and standby loss
descriptors;
(iv) a hybrid of descriptors; or
(v) a new approach.
(H) Application.--The efficiency descriptor
and accompanying test method established under
the final rule shall apply, to the maximum
extent practicable, to all water heating
technologies in use as of the date of enactment
of this paragraph and to future water heating
technologies.
(I) Participation.--The Secretary shall
invite interested stakeholders to participate
in the rulemaking process used to establish the
final rule.
(J) Testing of alternative descriptors.--In
establishing the final rule, the Secretary
shall contract with the National Institute of
Standards and Technology, as necessary, to
conduct testing and simulation of alternative
descriptors identified for consideration.
(K) Existing covered water heaters.--A
covered water heater shall be considered to
comply with the final rule on and after the
effective date of the final rule and with any
revised labeling requirements established by
the Federal Trade Commission to carry out the
final rule if the covered water heater--
(i) was manufactured prior to the
effective date of the final rule; and
(ii) complied with the efficiency
standards and labeling requirements in
effect prior to the final rule.
(6) Additional standards for grid-enabled water
heaters.--
(A) Definitions.--In this paragraph:
(i) Activation lock.--The term
``activation lock'' means a control
mechanism (either a physical device
directly on the water heater or a
control system integrated into the
water heater) that is locked by default
and contains a physical, software, or
digital communication that must be
activated with an activation key to
enable the product to operate at its
designed specifications and
capabilities and 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 that--
(I) has a rated storage tank
volume of more than 75 gallons;
(II) is manufactured on or
after April 16, 2015;
(III) 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 equivalent
alternative standard
prescribed by the
Secretary and developed
pursuant to paragraph
(5)(E);
(IV) is equipped at the point
of manufacture with an
activation lock; and
(V) 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 for a
grid-enabled water heater only to a utility or
other company that operates an electric thermal
storage or demand response program that uses
such a grid-enabled water heater.
(C) Reports.--
(i) Manufacturers.--The Secretary
shall require each manufacturer of
grid-enabled water heaters to report to
the Secretary annually the quantity 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
quantity 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 quantity 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--
(I) grid-enabled water
heaters do not require a
separate efficiency
requirement; or
(II) sales of grid-enabled
water heaters exceed by 15
percent or greater the quantity
of such products activated for
use in demand response and
thermal storage programs
annually and procedures to
prevent product diversion for
non-program purposes would not
be adequate to prevent such
product diversion.
(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
any impact on energy savings, electric
bills, peak load reduction, electric
reliability, integration of renewable
resources, and the environment.
(iv) Requirements.--In carrying out
this paragraph, the Secretary shall
require 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.
(f) Standards for Furnaces and Boilers.--(1) Furnaces (other
than furnaces designed solely for installation in mobile homes)
manufactured on or after January 1, 1992, shall have an annual
fuel utilization efficiency of not less than 78 percent, except
that--
(A) boilers (other than gas steam boilers) shall have
an annual fuel utilization efficiency of not less than
80 percent and gas steam boilers shall have an annual
fuel utilization efficiency of not less than 75
percent; and
(B) the Secretary shall prescribe a final rule not
later than January 1, 1989, establishing an energy
conservation standard--
(i) which is for furnaces (other than
furnaces designed solely for installation in
mobile homes) having an input of less than
45,000 Btu per hour and manufactured on or
after January 1, 1992;
(ii) which provides that the annual fuel
utilization efficiency of such furnaces shall
be a specific percent which is not less than 71
percent and not more than 78 percent; and
(iii) which the Secretary determines is not
likely to result in a significant shift from
gas heating to electric resistance heating with
respect to either residential construction or
furnace replacement.
(2) Furnaces which are designed solely for installation in
mobile homes and which are manufactured on or after September
1, 1990, shall have an annual fuel utilization efficiency of
not less than 75 percent.
(3) Boilers.--
(A) In general.--Subject to subparagraphs (B)
and (C), boilers manufactured on or after
September 1, 2012, shall meet the following
requirements:
------------------------------------------------------------------------
Minimum Annual
Boiler Type Fuel Utilization Design
Efficiency Requirements
------------------------------------------------------------------------
Gas Hot Water..................... 82% No Constant
Burning Pilot,
Automatic Means
for Adjusting
Water
Temperature
------------------------------------------------------------------------
Gas Steam........................ 80% No Constant
Burning Pilot
------------------------------------------------------------------------
Oil Hot Water..................... 84% Automatic Means
for Adjusting
Temperature
------------------------------------------------------------------------
Oil Steam........................ 82% None
------------------------------------------------------------------------
Electric Hot Water................ None Automatic Means
for Adjusting
Temperature
------------------------------------------------------------------------
Electric Steam.................... None None
------------------------------------------------------------------------
(B) Automatic means for adjusting water
temperature.--
(i) In general.--The manufacturer
shall equip each gas, oil, and electric
hot water boiler (other than a boiler
equipped with a tankless domestic water
heating coil) with automatic means for
adjusting the temperature of the water
supplied by the boiler to ensure that
an incremental change in inferred heat
load produces a corresponding
incremental change in the temperature
of water supplied.
(ii) Single input rate.--For a boiler
that fires at 1 input rate, the
requirements of this subparagraph may
be satisfied by providing an automatic
means that allows the burner or heating
element to fire only when the means has
determined that the inferred heat load
cannot be met by the residual heat of
the water in the system.
(iii) No inferred heat load.--When
there is no inferred heat load with
respect to a hot water boiler, the
automatic means described in clauses
(i) and (ii) shall limit the
temperature of the water in the boiler
to not more than 140 degrees
Fahrenheit.
(iv) Operation.--A boiler described
in clause (i) or (ii) shall be operable
only when the automatic means described
in clauses (i), (ii), and (iii) is
installed.
(C) Exception.--A boiler that is manufactured
to operate without any need for electricity or
any electric connection, electric gauges,
electric pumps, electric wires, or electric
devices shall not be required to meet the
requirements of this paragraph.
(4)(A) The Secretary shall publish a final rule no later than
January 1, 1992, to determine whether the standards established
by paragraph (2) for mobile home furnaces should be amended.
Such rule shall provide that any amendment shall apply to
products manufactured on or after January 1, 1994.
(B) The Secretary shall publish a final rule no later than
January 1, 1994, to determine whether the standards established
by this subsection for furnaces (including mobile home
furnaces) should be amended. Such rule shall provide that any
amendment shall apply to products manufactured on or after
January 1, 2002.
(C) After January 1, 1997, and before January 1, 2007, the
Secretary shall publish a final rule to determine whether
standards in effect for such products should be amended. Such
rule shall contain such amendment, if any, and provide that any
amendment shall apply to products manufactured on or after
January 1, 2012.
(D) Notwithstanding any other provision of this Act, if the
requirements of subsection (o) are met, not later than December
31, 2013, the Secretary shall consider and prescribe energy
conservation standards or energy use standards for electricity
used for purposes of circulating air through duct work.
(E)(i) Unless the Secretary has published such a notice prior
to the date of enactment of this Act, the Secretary shall
publish, not later than October 31, 2015, a supplemental notice
of proposed rulemaking or a notice of data availability
updating the proposed rule entitled ``Energy Conservation
Program for Consumer Products: Energy Conservation Standards
for Residential Furnaces'' and published in the Federal
Register on March 12, 2015 (80 Fed. Reg. 13119), to provide
notice and an opportunity for comment on--
(I) dividing nonweatherized gas furnaces into two or
more product classes with separate energy conservation
standards based on capacity; and
(II) any other matters the Secretary determines
appropriate.
(ii) On receipt of a statement that is submitted on or before
January 1, 2016, jointly by interested persons that are fairly
representative of relevant points of view, that contains
recommended standards for nonweatherized gas furnaces and
mobile home gas furnaces that are consistent with the
requirements of this part (except that the date on which such
standards will apply may be earlier or later than the date
required under this part), the Secretary shall evaluate the
standards proposed in the joint statement for consistency with
the requirements of subsection (o), and shall publish notice of
the potential adoption of the standards proposed in the joint
statement, modified as necessary to ensure consistency with
subsection (o). The Secretary shall solicit public comment for
a period of at least 30 days with respect to such notice.
(iii) Not later than July 31, 2016, but not before July 1,
2016, the Secretary shall publish a final rule containing a
determination of whether the standards for nonweatherized gas
furnaces and mobile home gas furnaces should be amended. Such
rule shall contain any such amendments to the standards.
(g) Standards for Dishwashers; Clothes Washers; Clothes
Dryers, Fluorescent Lamp Ballasts.--(1) Dishwashers
manufactured on or after January 1, 1988, shall be equipped
with an option to dry without heat.
(2) All rinse cycles of clothes washers shall include an
unheated water option, but may have a heated water rinse
option, for products manufactured on or after January 1, 1988.
(3) Gas clothes dryers shall not be equipped with a constant
burning pilot for products manufactured on or after January 1,
1988.
(4)(A) The Secretary shall publish final rules no later than
January 1, 1990, to determine if the standards established
under this subsection for products described in paragraphs (1),
(2), and (3) should be amended. Such rules shall provide that
any amendment shall apply to products the manufacture of which
is completed on or after January 1, 1993.
(B) After January 1, 1990, the Secretary shall publish a
final rule no later than five years after the date of
publication of the previous final rule. The Secretary shall
determine in such rule whether to amend the standards in effect
for such products.
(C) Any such amendment shall apply to products manufactured
after a date which is five years after--
(i) the effective date of the previous amendment; or
(ii) if the previous final rule did not amend the
standard, the earliest date by which a previous
amendment could have been in effect;
except that in no case may any amended standard apply to
products manufactured within 3 years after publication of the
final rule establishing such standard.
(5) Except as provided in paragraph (6), each fluorescent
lamp ballast--
(A)(i) manufactured on or after January 1, 1990;
(ii) sold by the manufacturer on or after April 1,
1990; or
(iii) incorporated into a luminaire by a luminaire
manufacturer on or after April 1, 1991; and
(B) designed--
(i) to operate at nominal input voltages of
120 or 277 volts;
(ii) to operate with an input current
frequency of 60 Hertz; and
(iii) for use in connection with an F40T12,
F96T12, or F96T12HO lamps;
shall have a power factor of 0.90 or greater and shall have a
ballast efficacy factor not less than the following:
Ballast Ballast
Application for Operation of Input Total Nominal Efficacy
Voltage Lamp Watts Factor
one F40T12 lamp................... 120 40 1.805
277 40 1.805
two F40T12 lamps.................. 120 80 1.060
277 80 1.050
two F96T12 lamps.................. 120 150 0.570
277 150 0.570
two F96T12HO lamps................ 120 220 0.390
277 220 0.390
(6) The standards described in paragraph (5) do not apply to
(A) a ballast which is designed for dimming or for use in
ambient temperatures of 0+ F or less, or (B) a ballast which
has a power factor of less than 0.90 and is designed and
labeled for use only in residential building applications.
(7)(A) The Secretary shall publish a final rule no later than
January 1, 1992, to determine if the standards established
under paragraph (5) should be amended, including whether such
standards should be amended so that they would be applicable to
ballasts described in paragraph (6) and other fluorescent lamp
ballasts. Such rule shall contain such amendment, if any, and
provide that the amendment shall apply to products manufactured
on or after January 1, 1995.
(B) After January 1, 1992, the Secretary shall publish a
final rule no later than five years after the date of
publication of a previous final rule. The Secretary shall
determine in such rule whether to amend the standards in effect
for fluorescent lamp ballasts, including whether such standards
should be amended so that they would be applicable to
additional fluorescent lamp ballasts.
(C) Any amendment prescribed under subparagraph (B) shall
apply to products manufactured after a date which is five years
after--
(i) the effective date of the previous amendment; or
(ii) if the previous final rule did not amend the
standards, the earliest date by which a previous
amendment could have been effective;
except that in no case may any amended standard apply to
products manufactured within three years after publication of
the final rule establishing such amended standard.
(8)(A) Each fluorescent lamp ballast (other than replacement
ballasts or ballasts described in subparagraph (C))--
(i)(I) manufactured on or after July 1, 2009;
(II) sold by the manufacturer on or after October 1,
2009; or
(III) incorporated into a luminaire by a luminaire
manufacturer on or after July 1, 2010; and
(ii) designed--
(I) to operate at nominal input voltages of
120 or 277 volts;
(II) to operate with an input current
frequency of 60 Hertz; and
(III) for use in connection with F34T12
lamps, F96T12/ES lamps, or F96T12HO/ES lamps;
shall have a power factor of 0.90 or greater and shall
have a ballast efficacy factor of not less than the
following:
.................. Total ...................
Application Ballast nominal Ballast
for input lamp efficacy
operation of voltage watts factor
One F34T12 120/277 34 2.61
lamp
Two F34T12 120/277 68 1.35
lamps
Two F96T12/ES 120/277 120 0.77
lamps
Two F96T12HO/ 120/277 190 0.42.
ES lamps
(B) The standards described in subparagraph (A) shall apply
to all ballasts covered by subparagraph (A)(ii) that are
manufactured on or after July 1, 2010, or sold by the
manufacturer on or after October 1, 2010.
(C) The standards described in subparagraph (A) do not apply
to--
(i) a ballast that is designed for dimming to 50
percent or less of the maximum output of the ballast;
(ii) a ballast that is designed for use with 2
F96T12HO lamps at ambient temperatures of negative 20+F
or less and for use in an outdoor sign; or
(iii) a ballast that has a power factor of less than
0.90 and is designed and labeled for use only in
residential applications.
(9) Residential clothes washers manufactured on or
after january 1, 2011.--
(A) In general.--A top-loading or front-
loading standard-size residential clothes
washer manufactured on or after January 1,
2011, shall have--
(i) a Modified Energy Factor of at
least 1.26; and
(ii) a water factor of not more than
9.5.
(B) Amendment of standards.--
(i) In general.--Not later than
December 31, 2011, the Secretary shall
publish a final rule determining
whether to amend the standards in
effect for clothes washers manufactured
on or after January 1, 2015.
(ii) Amended standards.--The final
rule shall contain any amended
standards.
(10) Residential dishwashers manufactured on or after
january 1, 2010.--
(A) In general.--A dishwasher manufactured on
or after January 1, 2010, shall--
(i) for a standard size dishwasher
not exceed 355 kWh/year and 6.5 gallons
per cycle; and
(ii) for a compact size dishwasher
not exceed 260 kWh/year and 4.5 gallons
per cycle.
(B) Amendment of standards.--
(i) In general.--Not later than
January 1, 2015, the Secretary shall
publish a final rule determining
whether to amend the standards for
dishwashers manufactured on or after
January 1, 2018.
(ii) Amended standards.--The final
rule shall contain any amended
standards.
(h) Standards for Kitchen Ranges and Ovens.--(1) Gas kitchen
ranges and ovens having an electrical supply cord shall not be
equipped with a constant burning pilot for products
manufactured on or after January 1, 1990.
(2)(A) The Secretary shall publish a final rule no later than
January 1, 1992, to determine if the standards established for
kitchen ranges and ovens in this subsection should be amended.
Such rule shall contain such amendment, if any, and provide
that the amendment shall apply to products manufactured on or
after January 1, 1995.
(B) The Secretary shall publish a final rule no later than
January 1, 1997, to determine whether standards in effect for
such products should be amended. Such rule shall apply to
products manufactured on or after January 1, 2000.
(i) General Service Fluorescent Lamps, General Service
Incandescent Lamps, Intermediate Base Incandescent Lamps,
Candelabra Base Incandescent Lamps, and Incandescent Reflector
Lamps.--
(1) Standards.--
(A) Definition of effective date.--In this
paragraph (other than subparagraph (D)), the
term ``effective date'' means, with respect to
each type of lamp specified in a table
contained in subparagraph (B), the last day of
the period of months corresponding to that type
of lamp (as specified in the table) that
follows October 24, 1992.
(B) Minimum standards.--Each of the following
general service fluorescent lamps and
incandescent reflector lamps manufactured after
the effective date specified in the tables
contained in this paragraph shall meet or
exceed the following lamp efficacy and CRI
standards:
FLUORESCENT LAMPS
----------------------------------------------------------------------------------------------------------------
Effective Date
Lamp Type Nominal Lamp Minimum CRI Minimum Average Lamp (Period of
Wattage Efficacy (LPW) Months)
----------------------------------------------------------------------------------------------------------------
4-foot medium bi-pin........... >35 W 69 75.0 36
:35 W 45 75.0 36
2-foot U-shaped................ >35 W 69 68.0 36
:35 W 45 64.0 36
8-foot slimline................ 65 W 69 80.0 18
:65 W 45 80.0 18
8-foot high output............. >100 W 69 80.0 18
:100 W 45 80.0 18
----------------------------------------------------------------------------------------------------------------
INCANDESCENT REFLECTOR LAMPS
------------------------------------------------------------------------
Effective Date
Nominal Lamp Wattage Minimum Average Lamp (Period of
Efficacy (LPW) Months)
------------------------------------------------------------------------
40-50....................... 10.5 36
51-66....................... 11.0 36
67-85....................... 12.5 36
86-115...................... 14.0 36
116-155...................... 14.5 36
156-205...................... 15.0 36
------------------------------------------------------------------------
(C) Exemptions.--The standards specified in
subparagraph (B) shall not apply to the
following types of incandescent reflector
lamps:
(i) Lamps rated at 50 watts or less
that are ER30, BR30, BR40, or ER40
lamps.
(ii) Lamps rated at 65 watts that are
BR30, BR40, or ER40 lamps.
(iii) R20 incandescent reflector
lamps rated 45 watts or less.
(D) Effective dates.--
(i) ER, br, and bpar lamps.--The
standards specified in subparagraph (B)
shall apply with respect to ER
incandescent reflector lamps, BR
incandescent reflector lamps, BPAR
incandescent reflector lamps, and
similar bulb shapes on and after
January 1, 2008.
(ii) Lamps between 2.25-2.75 inches
in diameter.--The standards specified
in subparagraph (B) shall apply with
respect to incandescent reflector lamps
with a diameter of more than 2.25
inches, but not more than 2.75 inches,
on and after the later of January 1,
2008, or the date that is 180 days
after the date of enactment of the
Energy Independence and Security Act of
2007.
(2) Notwithstanding section 332(a)(5) and section 332(b), it
shall not be unlawful for a manufacturer to sell a lamp which
is in compliance with the law at the time such lamp was
manufactured.
(3) Not less than 36 months after the date of the enactment
of this subsection, the Secretary shall initiate a rulemaking
procedure and shall publish a final rule not later than the end
of the 54-month period beginning on the date of the enactment
of this subsection to determine if the standards established
under paragraph (1) should be amended. Such rule shall contain
such amendment, if any, and provide that the amendment shall
apply to products manufactured on or after the 36-month period
beginning on the date such final rule is published.
(4) Not less than eight years after the date of the enactment
of this subsection, the Secretary shall initiate a rulemaking
procedure and shall publish a final rule not later than nine
years and six months after the date of the enactment of this
subsection to determine if the standards in effect for
fluorescent lamps and incandescent lamps should be amended.
Such rule shall contain such amendment, if any, and provide
that the amendment shall apply to products manufactured on or
after the 36-month period beginning on the date such final rule
is published.
(5) Not later than the end of the 24-month period beginning
on the date labeling requirements under section 324(a)(2)(C)
become effective, the Secretary shall initiate a rulemaking
procedure to determine if the standards in effect for
fluorescent lamps and incandescent lamps should be amended so
that they would be applicable to additional general service
fluorescent and shall publish, not later than 18 months after
initiating such rulemaking, a final rule including such amended
standards, if any. Such rule shall provide that the amendment
shall apply to products manufactured after a date which is 36
months after the date such rule is published.
(6) Standards for general service lamps.--
(A) Rulemaking before january 1, 2014.--
(i) In general.--Not later than
January 1, 2014, the Secretary shall
initiate a rulemaking procedure to
determine whether--
(I) standards in effect for
general service lamps should be
amended to establish more
stringent standards than the
standards specified in
paragraph (1)(A); and
(II) the exemptions for
certain incandescent lamps
should be maintained or
discontinued based, in part, on
exempted lamp sales collected
by the Secretary from
manufacturers.
(ii) Scope.--The rulemaking--
(I) shall not be limited to
incandescent lamp technologies;
and
(II) shall include
consideration of a minimum
standard of 45 lumens per watt
for general service lamps.
(iii) Amended standards.--If the
Secretary determines that the standards
in effect for general service
incandescent lamps should be amended,
the Secretary shall publish a final
rule not later than January 1, 2017,
with an effective date that is not
earlier than 3 years after the date on
which the final rule is published.
(iv) Phased-in effective dates.--The
Secretary shall consider phased-in
effective dates under this subparagraph
after considering--
(I) the impact of any
amendment on manufacturers,
retiring and repurposing
existing equipment, stranded
investments, labor contracts,
workers, and raw materials; and
(II) the time needed to work
with retailers and lighting
designers to revise sales and
marketing strategies.
(v) Backstop requirement.--If the
Secretary fails to complete a
rulemaking in accordance with clauses
(i) through (iv) or if the final rule
does not produce savings that are
greater than or equal to the savings
from a minimum efficacy standard of 45
lumens per watt, effective beginning
January 1, 2020, the Secretary shall
prohibit the sale of any general
service lamp that does not meet a
minimum efficacy standard of 45 lumens
per watt.
(vi) State preemption.--Neither
section 327(b) nor any other provision
of law shall preclude California or
Nevada from adopting, effective
beginning on or after January 1, 2018--
(I) a final rule adopted by
the Secretary in accordance
with clauses (i) through (iv);
(II) if a final rule
described in subclause (I) has
not been adopted, the backstop
requirement under clause (v);
or
(III) in the case of
California, if a final rule
described in subclause (I) has
not been adopted, any
California regulations relating
to these covered products
adopted pursuant to State
statute in effect as of the
date of enactment of the Energy
Independence and Security Act
of 2007.
(B) Rulemaking before january 1, 2020.--
(i) In general.--Not later than
January 1, 2020, the Secretary shall
initiate a rulemaking procedure to
determine whether--
(I) standards in effect for
general service incandescent
lamps should be amended to
reflect lumen ranges with more
stringent maximum wattage than
the standards specified in
paragraph (1)(A); and
(II) the exemptions for
certain incandescent lamps
should be maintained or
discontinued based, in part, on
exempted lamp sales data
collected by the Secretary from
manufacturers.
(ii) Scope.--The rulemaking shall not
be limited to incandescent lamp
technologies.
(iii) Amended standards.--If the
Secretary determines that the standards
in effect for general service
incandescent lamps should be amended,
the Secretary shall publish a final
rule not later than January 1, 2022,
with an effective date that is not
earlier than 3 years after the date on
which the final rule is published.
(iv) Phased-in effective dates.--The
Secretary shall consider phased-in
effective dates under this subparagraph
after considering--
(I) the impact of any
amendment on manufacturers,
retiring and repurposing
existing equipment, stranded
investments, labor contracts,
workers, and raw materials; and
(II) the time needed to work
with retailers and lighting
designers to revise sales and
marketing strategies.
(7)(A) With respect to any lamp to which standards are
applicable under this subsection or any lamp specified in
section 346, the Secretary shall inform any Federal entity
proposing actions which would adversely impact the energy
consumption or energy efficiency of such lamp of the energy
conservation consequences of such action. It shall be the
responsibility of such Federal entity to carefully consider the
Secretary's comments.
(B) Notwithstanding section 325(n)(1), the Secretary shall
not be prohibited from amending any standard, by rule, to
permit increased energy use or to decrease the minimum required
energy efficiency of any lamp to which standards are applicable
under this subsection if such action is warranted as a result
of other Federal action (including restrictions on materials or
processes) which would have the effect of either increasing the
energy use or decreasing the energy efficiency of such product.
(8) Not later than the date on which standards established
pursuant to this subsection become effective, or, with respect
to high-intensity discharge lamps covered under section 346,
the effective date of standards established pursuant to such
section, each manufacturer of a product to which such standards
are applicable shall file with the Secretary a laboratory
report certifying compliance with the applicable standard for
each lamp type. Such report shall include the lumen output and
wattage consumption for each lamp type as an average of
measurements taken over the preceding 12-month period. With
respect to lamp types which are not manufactured during the 12-
month period preceding the date such standards become
effective, such report shall be filed with the Secretary not
later than the date which is 12 months after the date
manufacturing is commenced and shall include the lumen output
and wattage consumption for each such lamp type as an average
of measurements taken during such 12-month period.
(j) Standards for Showerheads and Faucets.--(1) The maximum
water use allowed for any showerhead manufactured after January
1, 1994, is 2.5 gallons per minute when measured at a flowing
water pressure of 80 pounds per square inch. Any such
showerhead shall also meet the requirements of ASME/ANSI
A112.18.1M-1989, 7.4.3(a).
(2) The maximum water use allowed for any of the following
faucets manufactured after January 1, 1994, when measured at a
flowing water pressure of 80 pounds per square inch, is as
follows:
Lavatory faucets..2.5 gallons per minute..............................
Lavatory replaceme2.5 gallons per minute..............................
Kitchen faucets...2.5 gallons per minute..............................
Kitchen replacemen2.5 gallons per minute..............................
Metering faucets..0.25 gallons per cycle..............................
(3)(A) If the maximum flow rate requirements or the design
requirements of ASME/ANSI Standard A112.18.1M-1989 are amended
to improve the efficiency of water use of any type or class of
showerhead or faucet and are approved by ANSI, the Secretary
shall, not later than 12 months after the date of such
amendment, publish a final rule establishing an amended uniform
national standard for that product at the level specified in
the amended ASME/ANSI Standard A112.18.1M and providing that
such standard shall apply to products manufactured after a date
which is 12 months after the publication of such rule, unless
the Secretary determines, by rule published in the Federal
Register, that adoption of a uniform national standard at the
level specified in such amended ASME/ANSI Standard A112.18.1M--
(i) is not technologically feasible and economically
justified under subsection (o);
(ii) is not consistent with the maintenance of public
health and safety; or
(iii) is not consistent with the purposes of this
Act.
(B)(i) As part of the rulemaking conducted under subparagraph
(A), the Secretary shall also determine if adoption of a
uniform national standard for any type or class of showerhead
or faucet more stringent than such amended ASME/ANSI Standard
A112.18.1M--
(I) would result in additional conservation of energy
or water;
(II) would be technologically feasible and
economically justified under subsection (o); and
(III) would be consistent with the maintenance of
public health and safety.
(ii) If the Secretary makes an affirmative determination
under clause (i), the final rule published under subparagraph
(A) shall waive the provisions of section 327(c) with respect
to any State regulation concerning the water use or water
efficiency of such type or class of showerhead or faucet if
such State regulation--
(I) is more stringent than amended ASME/ANSI Standard
A112.18.1M for such type or class of showerhead or
faucet and the standard in effect for such product on
the day before the date on which a final rule is
published under subparagraph (A); and
(II) is applicable to any sale or installation of all
products in such type or class of showerhead or faucet.
(C) If, after any period of five consecutive years, the
maximum flow rate requirements of the ASME/ANSI standard for
showerheads are not amended to improve the efficiency of water
use of such products, or after any such period such
requirements for faucets are not amended to improve the
efficiency of water use of such products, the Secretary shall,
not later than six months after the end of such five-year
period, publish a final rule waiving the provisions of section
327(c) with respect to any State regulation concerning the
water use or water efficiency of such type or class of
showerhead or faucet if such State regulation--
(i) is more stringent than the standards in effect
for such type of class of showerhead or faucet; and
(ii) is applicable to any sale or installation of all
products in such type or class of showerhead or faucet.
(k) Standards for Water Closets and Urinals.--(1)(A) Except
as provided in subparagraph (B), the maximum water use allowed
in gallons per flush for any of the following water closets
manufactured after January 1, 1994, is the following:
Gravity tank-type toilets................................. 1.6 gpf.
Flushometer tank toilets.................................. 1.6 gpf.
Electromechanical hydraulic toilets....................... 1.6 gpf.
Blowout toilets........................................... 3.5 gpf.
(B) The maximum water use allowed for any gravity tank-type
white 2-piece toilet which bears an adhesive label conspicuous
upon installation consisting of the words ``Commercial Use
Only'' manufactured after January 1, 1994, and before January
1, 1997, is 3.5 gallons per flush.
(C) The maximum water use allowed for flushometer valve
toilets, other than blowout toilets, manufactured after January
1, 1997, is 1.6 gallons per flush.
(2) The maximum water use allowed for any urinal manufactured
after January 1, 1994, is 1.0 gallon per flush.
(3)(A) If the maximum flush volume requirements of ASME
Standard A112.19.6-1990 are amended to improve the efficiency
of water use of any low consumption water closet or low
consumption urinal and are approved by ANSI, the Secretary
shall, not later than 12 months after the date of such
amendment, publish a final rule establishing an amended uniform
national standard for that product at the level specified in
amended ASME/ANSI Standard A112.19.6 and providing that such
standard shall apply to products manufactured after a date
which is one year after the publication of such rule, unless
the Secretary determines, by rule published in the Federal
Register, that adoption of a uniform national standard at the
level specified in such amended ASME/ANSI Standard A112.19.6--
(i) is not technologically feasible and economically
justified under subsection (o);
(ii) is not consistent with the maintenance of public
health and safety; or
(iii) is not consistent with the purposes of this
Act.
(B)(i) As part of the rulemaking conducted under subparagraph
(A), the Secretary shall also determine if adoption of a
uniform national standard for any type or class of low
consumption water closet or low consumption urinal more
stringent than such amended ASME/ANSI Standard A112.19.6 for
such product--
(I) would result in additional conservation of energy
or water;
(II) would be technologically feasible and
economically justified under subsection (o); and
(III) would be consistent with the maintenance of
public health and safety.
(ii) If the Secretary makes an affirmative determination
under clause (i), the final rule published under subparagraph
(A) shall waive the provisions of section 327(c) with respect
to any State regulation concerning the water use or water
efficiency of such type or class of low consumption water
closet or low consumption urinal if such State regulation--
(I) is more stringent than amended ASME/ANSI Standard
A112.19.6 for such type or class of low consumption
water closet or low consumption urinal and the standard
in effect for such product on the day before the date
on which a final rule is published under subparagraph
(A); and
(II) is applicable to any sale or installation of all
products in such type or class of low consumption water
closet or low consumption urinal.
(C) If, after any period of five consecutive years, the
maximum flush volume requirements of the ASME/ANSI standard for
low consumption water closets are not amended to improve the
efficiency of water use of such products, or after any such
period such requirements for low consumption urinals are not
amended to improve the efficiency of water use of such
products, the Secretary shall, not later than six months after
the end of such five-year period, publish a final rule waiving
the provisions of section 327(c) with respect to any State
regulation concerning the water use or water efficiency of such
type or class of water closet or urinal if such State
regulation--
(i) is more stringent than the standards in effect
for such type or class of water closet or urinal; and
(ii) is applicable to any sale or installation of all
products in such type or class of water closet or
urinal.
(l) Standards for Other Covered Products.--(1) The Secretary
may prescribe an energy conservation standard for any type (or
class) of covered products of a type specified in paragraph
(19) of section 322(a) if the requirements of subsections (o)
and (p) are met and the Secretary determines that--
(A) the average per household energy use within the
United States by products of such type (or class)
exceeded 150 kilowatt-hours (or its Btu equivalent) for
any 12-month period ending before such determination;
(B) the aggregate household energy use within the
United States by products of such type (or class)
exceeded 4,200,000,000 kilowatt-hours (or its Btu
equivalent) for any such 12-month period;
(C) substantial improvement in the energy efficiency
of products of such type (or class) is technologically
feasible; and
(D) the application of a labeling rule under section
324 to such type (or class) is not likely to be
sufficient to induce manufacturers to produce, and
consumers and other persons to purchase, covered
products of such type (or class) which achieve the
maximum energy efficiency which is technologically
feasible and economically justified.
(2) Any new or amended standard for covered products of a
type specified in paragraph (19) of section 322(a) shall not
apply to products manufactured within five years after the
publication of a final rule establishing such standard.
(3) The Secretary may, in accordance with subsections (o) and
(p), prescribe an energy conservation standard for television
sets. Any such standard may not become effective with respect
to products manufactured before January 1, 1992.
(4) Energy efficiency standards for certain lamps.--
(A) In general.--The Secretary shall
prescribe an energy efficiency standard for
rough service lamps, vibration service lamps,
3-way incandescent lamps, 2,601-3,300 lumen
general service incandescent lamps, and
shatter-resistant lamps in accordance with this
paragraph.
(B) Benchmarks.--Not later than 1 year after
the date of enactment of this paragraph, the
Secretary, in consultation with the National
Electrical Manufacturers Association, shall--
(i) collect actual data for United
States unit sales for each of calendar
years 1990 through 2006 for each of the
5 types of lamps described in
subparagraph (A) to determine the
historical growth rate of the type of
lamp; and
(ii) construct a model for each type
of lamp based on coincident economic
indicators that closely match the
historical annual growth rate of the
type of lamp to provide a neutral
comparison benchmark to model future
unit sales after calendar year 2006.
(C) Actual sales data.--
(i) In general.--Effective for each
of calendar years 2010 through 2025,
the Secretary, in consultation with the
National Electrical Manufacturers
Association, shall--
(I) collect actual United
States unit sales data for each
of 5 types of lamps described
in subparagraph (A); and
(II) not later than 90 days
after the end of each calendar
year, compare the lamp sales in
that year with the sales
predicted by the comparison
benchmark for each of the 5
types of lamps described in
subparagraph (A).
(ii) Continuation of tracking.--
(I) Determination.--Not later
than January 1, 2023, the
Secretary shall determine if
actual sales data should be
tracked for the lamp types
described in subparagraph (A)
after calendar year 2025.
(II) Continuation.--If the
Secretary finds that the market
share of a lamp type described
in subparagraph (A) could
significantly erode the market
share for general service
lamps, the Secretary shall
continue to track the actual
sales data for the lamp type.
(D) Rough service lamps.--
(i) In general.--Effective beginning
with the first year that the reported
annual sales rate for rough service
lamps demonstrates actual unit sales of
rough service lamps that achieve levels
that are at least 100 percent higher
than modeled unit sales for that same
year, the Secretary shall--
(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
(II) not later than the date
that is 1 year after the end of
the previous calendar year,
complete an accelerated
rulemaking to establish an
energy conservation standard
for rough service lamps.
(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of the
issuance of the finding under clause
(i)(I), the Secretary shall require
rough service lamps to--
(I) have a shatter-proof
coating or equivalent
technology that is compliant
with NSF/ANSI 51 and is
designed to contain the glass
if the glass envelope of the
lamp is broken and to provide
effective containment over the
life of the lamp;
(II) have a maximum 40-watt
limitation; and
(III) be sold at retail only
in a package containing 1 lamp.
(E) Vibration service lamps.--
(i) In general.--Effective beginning
with the first year that the reported
annual sales rate for vibration service
lamps demonstrates actual unit sales of
vibration service lamps that achieve
levels that are at least 100 percent
higher than modeled unit sales for that
same year, the Secretary shall--
(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
(II) not later than the date
that is 1 year after the end of
the previous calendar year,
complete an accelerated
rulemaking to establish an
energy conservation standard
for vibration service lamps.
(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of the
issuance of the finding under clause
(i)(I), the Secretary shall require
vibration service lamps to--
(I) have a maximum 40-watt
limitation; and
(II) be sold at retail only
in a package containing 1 lamp.
(F) 3-way incandescent lamps.--
(i) In general.--Effective beginning
with the first year that the reported
annual sales rate for 3-way
incandescent lamps demonstrates actual
unit sales of 3-way incandescent lamps
that achieve levels that are at least
100 percent higher than modeled unit
sales for that same year, the Secretary
shall--
(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
(II) not later than the date
that is 1 year after the end of
the previous calendar year,
complete an accelerated
rulemaking to establish an
energy conservation standard
for 3-way incandescent lamps.
(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of
issuance of the finding under clause
(i)(I), the Secretary shall require
that--
(I) each filament in a 3-way
incandescent lamp meet the new
maximum wattage requirements
for the respective lumen range
established under subsection
(i)(1)(A); and
(II) 3-way lamps be sold at
retail only in a package
containing 1 lamp.
(G) 2,601-3,300 lumen general service
incandescent lamps.--Effective beginning with
the first year that the reported annual sales
rate demonstrates actual unit sales of 2,601-
3,300 lumen general service incandescent lamps
in the lumen range of 2,601 through 3,300
lumens (or, in the case of a modified spectrum,
in the lumen range of 1,951 through 2,475
lumens) that achieve levels that are at least
100 percent higher than modeled unit sales for
that same year, the Secretary shall impose--
(i) a maximum 95-watt limitation on
general service incandescent lamps in
the lumen range of 2,601 through 3,300
lumens; and
(ii) a requirement that those lamps
be sold at retail only in a package
containing 1 lamp.
(H) Shatter-resistant lamps.--
(i) In general.--Effective beginning
with the first year that the reported
annual sales rate for shatter-resistant
lamps demonstrates actual unit sales of
shatter-resistant lamps that achieve
levels that are at least 100 percent
higher than modeled unit sales for that
same year, the Secretary shall--
(I) not later than 90 days
after the end of the previous
calendar year, issue a finding
that the index has been
exceeded; and
(II) not later than the date
that is 1 year after the end of
the previous calendar year,
complete an accelerated
rulemaking to establish an
energy conservation standard
for shatter-resistant lamps.
(ii) Backstop requirement.--If the
Secretary fails to complete an
accelerated rulemaking in accordance
with clause (i)(II), effective
beginning 1 year after the date of
issuance of the finding under clause
(i)(I), the Secretary shall impose--
(I) a maximum wattage
limitation of 40 watts on
shatter resistant lamps; and
(II) a requirement that those
lamps be sold at retail only in
a package containing 1 lamp.
(I) Rulemakings before january 1, 2025.--
(i) In general.--Except as provided
in clause (ii), if the Secretary issues
a final rule prior to January 1, 2025,
establishing an energy conservation
standard for any of the 5 types of
lamps for which data collection is
required under any of subparagraphs (D)
through (G), the requirement to collect
and model data for that type of lamp
shall terminate unless, as part of the
rulemaking, the Secretary determines
that continued tracking is necessary.
(ii) Backstop requirement.--If the
Secretary imposes a backstop
requirement as a result of a failure to
complete an accelerated rulemaking in
accordance with clause (i)(II) of any
of subparagraphs (D) through (G), the
requirement to collect and model data
for the applicable type of lamp shall
continue for an additional 2 years
after the effective date of the
backstop requirement.
(m) Amendment of Standards.--
(1) In general.--Not later than 6 years after
issuance of any final rule establishing or amending a
standard, as required for a product under this part,
the Secretary shall publish--
(A) a notice of the determination of the
Secretary that standards for the product do not
need to be amended, based on the criteria
established under subsection (n)(2); or
(B) a notice of proposed rulemaking including
new proposed standards based on the criteria
established under subsection (o) and the
procedures established under subsection (p).
(2) Notice.--If the Secretary publishes a notice
under paragraph (1), the Secretary shall--
(A) publish a notice stating that the
analysis of the Department is publicly
available; and
(B) provide an opportunity for written
comment.
(3) Amendment of standard; new determination.--
(A) Amendment of standard.--Not later than 2
years after a notice is issued under paragraph
(1)(B), the Secretary shall publish a final
rule amending the standard for the product.
(B) New determination.--Not later than 3
years after a determination under paragraph
(1)(A), the Secretary shall make a new
determination and publication under
subparagraph (A) or (B) of paragraph (1).
(4) Application to products.--
(A) In general.--Except as provided in
subparagraph (B), an amendment prescribed under
this subsection shall apply to--
(i) with respect to refrigerators,
refrigerator-freezers, freezers, room
air conditioners, dishwashers, clothes
washers, clothes dryers, fluorescent
lamp ballasts, and kitchen ranges and
ovens, such a product that is
manufactured after the date that is 3
years after publication of the final
rule establishing an applicable
standard; and
(ii) with respect to central air
conditioners, heat pumps, water
heaters, pool heaters, direct heating
equipment, and furnaces, such a product
that is manufactured after the date
that is 5 years after publication of
the final rule establishing an
applicable standard.
(B) Other new standards.--A manufacturer
shall not be required to apply new standards to
a product with respect to which other new
standards have been required during the prior
6-year period.
(5) Reports.--The Secretary shall promptly submit to
the Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate--
(A) a progress report every 180 days on
compliance with this section, including a
specific plan to remedy any failures to comply
with deadlines for action established under
this section; and
(B) all required reports to the Court or to
any party to the Consent Decree in State of New
York v Bodman, Consolidated Civil Actions No.
05 Civ. 7807 and No. 05 Civ. 7808.
(n) Petition for an Amended Standard.--(1) With respect to
each covered product described in paragraphs (1) through (11),
and in paragraphs (13) and (14) of section 322(a), any person
may petition the Secretary to conduct a rulemaking to determine
for a covered product if the standards contained either in the
last final rule required under subsections (b) through (i) of
this section or in a final rule published under this section
should be amended.
(2) The Secretary shall grant a petition if he finds that it
contains evidence which, assuming no other evidence were
considered, provides an adequate basis for amending the
standards under the following criteria--
(A) amended standards will result in significant
conservation of energy;
(B) amended standards are technologically feasible;
and
(C) amended standards are cost effective as described
in subsection (o)(2)(B)(i)(II).
The grant of a petition by the Secretary under this subsection
creates no presumption with respect to the Secretary's
determination of any of the criteria in a rulemaking under this
section.
(3) Notice of decision.--Not later than 180 days
after the date of receiving a petition, the Secretary
shall publish in the Federal Register a notice of, and
explanation for, the decision of the Secretary to grant
or deny the petition.
(4) New or amended standards.--Not later than 3 years
after the date of granting a petition for new or
amended standards, the Secretary shall publish in the
Federal Register--
(A) a final rule that contains the new or
amended standards; or
(B) a determination that no new or amended
standards are necessary.
(5) An amendment prescribed under this subsection shall apply
to products manufactured after a date which is 5 years after--
(A) the effective date of the previous amendment
pursuant to this part; or
(B) if the previous final rule published under this
part did not amend the standard, the earliest date by
which a previous amendment could have been in effect,
except that in no case may an amended standard apply to
products manufactured within 3 years (for
refrigerators, refrigerator-freezers, and freezers,
room air conditioners, dishwashers, clothes washers,
clothes dryers, fluorescent lamp ballasts, general
service fluorescent lamps, incandescent reflector
lamps, and kitchen ranges and ovens) or 5 years (for
central air conditioners and heat pumps, water heaters,
pool heaters, direct heating equipment and furnaces)
after publication of the final rule establishing a
standard.
(o) Criteria for Prescribing New or Amended Standards.--(1)
The Secretary may not prescribe any amended standard which
increases the maximum allowable energy use, or, in the case of
showerheads, faucets, water closets, or urinals, water use, or
decreases the minimum required energy efficiency, of a covered
product.
(2)(A) Any new or amended energy conservation standard
prescribed by the Secretary under this section for any type (or
class) of covered product shall be designed to achieve the
maximum improvement in energy efficiency, or, in the case of
showerheads, faucets, water closets, or urinals, water
efficiency, which the Secretary determines is technologically
feasible and economically justified.
(B)(i) In determining whether a standard is economically
justified, the Secretary shall, after receiving views and
comments furnished with respect to the proposed standard,
determine whether the benefits of the standard exceed its
burdens by, to the greatest extent practicable, considering--
(I) the economic impact of the standard on the
manufacturers and on the consumers of the products
subject to such standard;
(II) the savings in operating costs throughout the
estimated average life of the covered product in the
type (or class) compared to any increase in the price
of, or in the initial charges for, or maintenance
expenses of, the covered products which are likely to
result from the imposition of the standard;
(III) the total projected amount of energy, or as
applicable, water, savings likely to result directly
from the imposition of the standard;
(IV) any lessening of the utility or the performance
of the covered products likely to result from the
imposition of the standard;
(V) the impact of any lessening of competition, as
determined in writing by the Attorney General, that is
likely to result from the imposition of the standard;
(VI) the need for national energy and water
conservation; and
(VII) other factors the Secretary considers relevant.
(ii) For purposes of clause (i)(V), the Attorney General
shall make a determination of the impact, if any, of any
lessening of competition likely to result from such standard
and shall transmit such determination, not later than 60 days
after the publication of a proposed rule prescribing or
amending an energy conservation standard, in writing to the
Secretary, together with an analysis of the nature and extent
of such impact. Any such determination and analysis shall be
published by the Secretary in the Federal Register.
(iii) If the Secretary finds that the additional cost to the
consumer of purchasing a product complying with an energy
conservation standard level will be less than three times the
value of the energy, and as applicable, water, savings during
the first year that the consumer will receive as a result of
the standard, as calculated under the applicable test
procedure, there shall be a rebuttable presumption that such
standard level is economically justified. A determination by
the Secretary that such criterion is not met shall not be taken
into consideration in the Secretary's determination of whether
a standard is economically justified.
(3) The Secretary may not prescribe an amended or new
standard under this section for a type (or class) of covered
product if--
(A) for products other than dishwashers, clothes
washers, clothes dryers, and kitchen ranges and ovens,
a test procedure has not been prescribed pursuant to
section 323 with respect to that type (or class) of
product; or
(B) the Secretary determines, by rule, that the
establishment of such standard will not result in
significant conservation of energy or, in the case of
showerheads, faucets, water closets, or urinals, water,
or that the establishment of such standard is not
technologically feasible or economically justified.
For purposes of section 327, a determination under subparagraph
(B) with respect to any type (or class) of covered products
shall have the same effect as would a standard prescribed for
such type (or class).
(4) The Secretary may not prescribe an amended or new
standard under this section if the Secretary finds (and
publishes such finding) that interested persons have
established by a preponderance of the evidence that the
standard is likely to result in the unavailability in the
United States in any covered product type (or class) of
performance characteristics (including reliability), features,
sizes, capacities, and volumes that are substantially the same
as those generally available in the United States at the time
of the Secretary's finding. The failure of some types (or
classes) to meet this criterion shall not affect the
Secretary's determination of whether to prescribe a standard
for other types (or classes).
(5) The Secretary may set more than 1 energy conservation
standard for products that serve more than 1 major function by
setting 1 energy conservation standard for each major function.
(6) Regional standards for furnaces, central air
conditioners, and heat pumps.--
(A) In general.--In any rulemaking to
establish a new or amended standard, the
Secretary may consider the establishment of
separate standards by geographic region for
furnaces (except boilers), central air
conditioners, and heat pumps.
(B) National and regional standards.--
(i) National standard.--If the
Secretary establishes a regional
standard for a product, the Secretary
shall establish a base national
standard for the product.
(ii) Regional standards.--If the
Secretary establishes a regional
standard for a product, the Secretary
may establish more restrictive
standards for the product by geographic
region as follows:
(I) For furnaces, the
Secretary may establish 1
additional standard that is
applicable in a geographic
region defined by the
Secretary.
(II) For any cooling product,
the Secretary may establish 1
or 2 additional standards that
are applicable in 1 or 2
geographic regions as may be
defined by the Secretary.
(C) Boundaries of geographic regions.--
(i) In general.--Subject to clause
(ii), the boundaries of additional
geographic regions established by the
Secretary under this paragraph shall
include only contiguous States.
(ii) Alaska and hawaii.--The States
of Alaska and Hawaii may be included
under this paragraph in a geographic
region that the States are not
contiguous to.
(iii) Individual states.--Individual
States shall be placed only into a
single region under this paragraph.
(D) Prerequisites.--In establishing
additional regional standards under this
paragraph, the Secretary shall--
(i) establish additional regional
standards only if the Secretary
determines that--
(I) the establishment of
additional regional standards
will produce significant energy
savings in comparison to
establishing only a single
national standard; and
(II) the additional regional
standards are economically
justified under this paragraph;
and
(ii) consider the impact of the
additional regional standards on
consumers, manufacturers, and other
market participants, including product
distributors, dealers, contractors, and
installers.
(E) Application; effective date.--
(i) Base national standard.--Any base
national standard established for a
product under this paragraph shall--
(I) be the minimum standard
for the product; and
(II) apply to all products
manufactured or imported into
the United States on and after
the effective date for the
standard.
(ii) Regional standards.--Any
additional and more restrictive
regional standard established for a
product under this paragraph shall
apply to any such product [installed]
manufactured or imported into the
United States on or after the effective
date of the standard in States in which
the Secretary has designated the
standard to apply.
(F) Continuation of regional standards.--
(i) In general.--In any subsequent
rulemaking for any product for which a
regional standard has been previously
established, the Secretary shall
determine whether to continue the
establishment of separate regional
standards for the product.
(ii) Regional standard no longer
appropriate.--Except as provided in
clause (iii), if the Secretary
determines that regional standards are
no longer appropriate for a product,
beginning on the effective date of the
amended standard for the product--
(I) there shall be 1 base
national standard for the
product with Federal
enforcement; and
(II) State authority for
enforcing a regional standard
for the product shall
terminate.
(iii) Regional standard appropriate
but standard or region changed.--
(I) State no longer contained
in region.--Subject to
subclause (III), if a State is
no longer contained in a region
in which a regional standard
that is more stringent than the
base national standard applies,
the authority of the State to
enforce the regional standard
shall terminate.
(II) Standard or region
revised so that existing
regional standard equals base
national standard.--If the
Secretary revises a base
national standard for a product
or the geographic definition of
a region so that an existing
regional standard for a State
is equal to the revised base
national standard--
(aa) the authority of
the State to enforce
the regional standard
shall terminate on the
effective date of the
revised base national
standard; and
(bb) the State shall
be subject to the
revised base national
standard.
(III) Standard or region
revised so that existing
regional standard equals base
national standard.--If the
Secretary revises a base
national standard for a product
or the geographic definition of
a region so that the standard
for a State is lower than the
previously approved regional
standard, the State may
continue to enforce the
previously approved standard
level.
(iv) Waiver of federal preemption.--
Nothing in this paragraph diminishes
the authority of a State to enforce a
State regulation for which a waiver of
Federal preemption has been granted
under section 327(d).
(G) Enforcement.--
(i) Base national standard.--
(I) In general.--The
Secretary shall enforce any
base national standard.
(II) Trade association
certification programs.--In
enforcing the base national
standard, the Secretary shall
use, to the maximum extent
practicable, national standard
nationally recognized
certification programs of trade
associations.
(ii) Regional standards.--
(I) Enforcement plan.--Not
later than 90 days after the
date of the issuance of a final
rule that establishes a
regional standard, the
Secretary shall initiate a
rulemaking to develop and
implement an effective
enforcement plan for regional
standards for the products that
are covered by the final rule.
(II) Responsible entities.--
Any rules regarding enforcement
of a regional standard shall
clearly specify which entities
are legally responsible for
compliance with the standards
and for making any required
information or labeling
disclosures.
(III) Final rule.--Not later
than 15 months after the date
of the issuance of a final rule
that establishes a regional
standard for a product, the
Secretary shall promulgate a
final rule covering enforcement
of regional standards for the
product.
(IV) Incorporation by states
and localities.--A State or
locality may incorporate any
Federal regional standard into
State or local building codes
or State appliance standards.
(V) State enforcement.--A
State agency may seek
enforcement of a Federal
regional standard in a Federal
court of competent
jurisdiction.
(H) Information disclosure.--
(i) In general.--Not later than 90
days after the date of the publication
of a final rule that establishes a
regional standard for a product, the
Federal Trade Commission shall
undertake a rulemaking to determine the
appropriate 1 or more methods for
disclosing information so that
consumers, distributors, contractors,
and installers can easily determine
whether a specific piece of equipment
that is installed in a specific
building is in conformance with the
regional standard that applies to the
building.
(ii) Methods.--A method of disclosing
information under clause (i) may
include--
(I) modifications to the
Energy Guide label; or
(II) other methods that make
it easy for consumers and
installers to use and
understand at the point of
installation.
(iii) Completion of rulemaking.--The
rulemaking shall be completed not later
15 months after the date of the
publication of a final rule that
establishes a regional standard for a
product.
(p) Procedure for Prescribing New or Amended Standards.--Any
new or amended energy conservation standard shall be prescribed
in accordance with the following procedure:
(1) The Secretary shall provide an opportunity for
public input prior to the issuance of a proposed rule,
seeking information--
(A) identifying and commenting on design
options;
(B) on the existence of and opportunities for
voluntary nonregulatory actions; and
(C) identifying significant subgroups of
consumers and manufacturers that merit
analysis.
[(1)] (2) A proposed rule which prescribes an amended
or new energy conservation standard or prescribes no
amendment or no new standard for a type (or class) of
covered products shall be published in the Federal
Register. In prescribing any such proposed rule with
respect to a standard, the Secretary shall determine
the maximum improvement in energy efficiency or maximum
reduction in energy use that is technologically
feasible for each type (or class) of covered products.
If such standard is not designed to achieve such
efficiency or use, the Secretary shall state in the
proposed rule the reasons therefor.
[(2)] (3) After the publication of such proposed
rulemaking, the Secretary shall, in accordance with
section 336, afford interested persons an opportunity,
during a period of not less than 60 days, to present
oral and written comments (including an opportunity to
question those who make such presentations, as provided
in such section) on matters relating to such proposed
rule, including--
(A) whether the standard to be prescribed is
economically justified (taking into account
those factors which the Secretary must consider
under subsection (o)(2)) or will result in the
effects described in subsection (o)(4);
(B) whether the standard will achieve the
maximum improvement in energy efficiency which
is technologically feasible;
(C) if the standard will not achieve such
improvement, whether the reasons for not
achieving such improvement are adequate; [and]
(D) whether such rule should prescribe a
level of energy use or efficiency which is
higher or lower than that which would otherwise
apply in the case of any group of products
within the type (or class) that will be subject
to such [standard.] standard;
(E) whether the technical and economic
analytical assumptions, methods, and models
used to justify the standard to be prescribed
are--
(i) justified; and
(ii) available and accessible for
public review, analysis, and use; and
(F) the cumulative regulatory impacts on the
manufacturers of the product, taking into
account--
(i) other government standards
affecting energy use; and
(ii) other energy conservation
standards affecting the same
manufacturers.
(4) Restriction on test procedure amendments.--
(A) In general.--Any proposed energy
conservation standards rule shall be based on
the final test procedure which shall be used to
determine compliance, and the public comment
period on the proposed standards shall conclude
no sooner than 180 days after the date of
publication of a final rule revising the test
procedure.
(B) Exception.--The Secretary may propose or
prescribe an amendment to the test procedures
issued pursuant to section 323 for any type or
class of covered product after the issuance of
a notice of proposed rulemaking to prescribe an
amended or new energy conservation standard for
that type or class of covered product, but
before the issuance of a final rule prescribing
any such standard, if--
(i) the amendments to the test
procedure have consensus support
achieved through a rulemaking conducted
in accordance with the subchapter III
of chapter 5 of title 5, United States
Code (commonly known as the
``Negotiated Rulemaking Act of 1990'');
or
(ii) the Secretary receives a
statement that is submitted jointly by
interested persons that are fairly
representative of relevant points of
view (including representatives of
manufacturers of the type or class of
covered product, States, and efficiency
advocates), as determined by the
Secretary, which contains a
recommendation that a supplemental
notice of proposed rulemaking is not
necessary for the type or class of
covered product.
[(3)] (5) A final rule prescribing an amended or new
energy conservation standard or prescribing no amended
or new standard for a type (or class) of covered
products shall be published as soon as is practicable,
but not less than 90 days, after publication of the
proposed rule in the Federal Register.
[(4)] (6) Direct final rules.--
(A) In general.--On receipt of a statement
that is submitted jointly by interested persons
that are fairly representative of relevant
points of view (including representatives of
manufacturers of covered products, States, and
efficiency advocates), as determined by the
Secretary, and contains recommendations with
respect to an energy or water conservation
standard--
(i) if the Secretary determines that
the recommended standard contained in
the statement is in accordance with
subsection (o) or section 342(a)(6)(B),
as applicable, the Secretary may issue
a final rule that establishes an energy
or water conservation standard and is
published simultaneously with a notice
of proposed rulemaking that proposes a
new or amended energy or water
conservation standard that is identical
to the standard established in the
final rule to establish the recommended
standard (referred to in this paragraph
as a ``direct final rule''); or
(ii) if the Secretary determines that
a direct final rule cannot be issued
based on the statement, the Secretary
shall publish a notice of the
determination, together with an
explanation of the reasons for the
determination.
(B) Public comment.--The Secretary shall
solicit public comment for a period of at least
110 days with respect to each direct final rule
issued by the Secretary under subparagraph
(A)(i).
(C) Withdrawal of direct final rules.--
(i) In general.--Not later than 120
days after the date on which a direct
final rule issued under subparagraph
(A)(i) is published in the Federal
Register, the Secretary shall withdraw
the direct final rule if--
(I) the Secretary receives 1
or more adverse public comments
relating to the direct final
rule under subparagraph (B)(i)
or any alternative joint
recommendation; and
(II) based on the rulemaking
record relating to the direct
final rule, the Secretary
determines that such adverse
public comments or alternative
joint recommendation may
provide a reasonable basis for
withdrawing the direct final
rule under subsection (o),
section 342(a)(6)(B), or any
other applicable law.
(ii) Action on withdrawal.--On
withdrawal of a direct final rule under
clause (i), the Secretary shall--
(I) proceed with the notice
of proposed rulemaking
published simultaneously with
the direct final rule as
described in subparagraph
(A)(i); and
(II) publish in the Federal
Register the reasons why the
direct final rule was
withdrawn.
(iii) Treatment of withdrawn direct
final rules.--A direct final rule that
is withdrawn under clause (i) shall not
be considered to be a final rule for
purposes of subsection (o).
(D) Effect of paragraph.--Nothing in this
paragraph authorizes the Secretary to issue a
direct final rule based solely on receipt of
more than 1 statement containing recommended
standards relating to the direct final rule.
(q) Special Rule for Certain Types or Classes of Products.--
(1) A rule prescribing an energy conservation standard for a
type (or class) of covered products shall specify a level of
energy use or efficiency higher or lower than that which
applies (or would apply) for such type (or class) for any group
of covered products which have the same function or intended
use, if the Secretary determines that covered products within
such group--
(A) consume a different kind of energy from that
consumed by other covered products within such type (or
class); or
(B) have a capacity or other performance-related
feature which other products within such type (or
class) do not have and such feature justifies a higher
or lower standard from that which applies (or will
apply) to other products within such type (or class).
In making a determination under this paragraph concerning
whether a performance-related feature justifies the
establishment of a higher or lower standard, the Secretary
shall consider such factors as the utility to the consumer of
such a feature, and such other factors as the Secretary deems
appropriate.
(2) Any rule prescribing a higher or lower level of energy
use or efficiency under paragraph (1) shall include an
explanation of the basis on which such higher or lower level
was established.
(r) Inclusion in Standards of Test Procedures and Other
Requirements.--Any new or amended energy conservation standard
prescribed under this section shall include, where applicable,
test procedures prescribed in accordance with section 323 and
may include any requirement which the Secretary determines is
necessary to assure that each covered product to which such
standard applies meets the required minimum level of energy
efficiency or maximum quantity of energy use specified in such
standard.
(s) Determination of Compliance With Standards.--Compliance
with, and performance under, the energy conservation standards
(except for design standards authorized by this part)
established in, or prescribed under, this section shall be
determined using the test procedures and corresponding
compliance criteria prescribed under section 323.
(t) Small Manufacturer Exemption.--(1) Subject to paragraph
(2), the Secretary may, on application of any manufacturer,
exempt such manufacturer from all or part of the requirements
of any energy conservation standard established in or
prescribed under this section for any period not longer than
the 24-month period beginning on the date such rule becomes
effective, if the Secretary finds that the annual gross
revenues of such manufacturer from all its operations
(including the manufacture and sale of covered products) does
not exceed $8,000,000 for the 12-month period preceding the
date of the application. In making such finding with respect to
any manufacturer, the Secretary shall take into account the
annual gross revenues of any other person who controls, is
controlled by, or is under common control with, such
manufacturer.
(2) The Secretary may not exercise the authority granted
under paragraph (1) with respect to any type (or class) of
covered product subject to an energy conservation standard
under this section unless the Secretary makes a finding, after
obtaining the written views of the Attorney General, that a
failure to allow an exemption under paragraph (1) would likely
result in a lessening of competition.
(u) Battery Charger and External Power Supply Electric Energy
Consumption.--(1)(A) Not later than 18 months after the date of
enactment of this subsection, the Secretary shall, after
providing notice and an opportunity for comment, prescribe, by
rule, definitions and test procedures for the power use of
battery chargers and external power supplies.
(B) In establishing the test procedures under subparagraph
(A), the Secretary shall--
(i) consider existing definitions and test procedures
used for measuring energy consumption in standby mode
and other modes; and
(ii) assess the current and projected future market
for battery chargers and external power supplies.
(C) The assessment under subparagraph (B)(ii) shall include--
(i) estimates of the significance of potential energy
savings from technical improvements to battery chargers
and external power supplies; and
(ii) suggested product classes for energy
conservation standards.
(D) Not later than 18 months after the date of enactment of
this subsection, the Secretary shall hold a scoping workshop to
discuss and receive comments on plans for developing energy
conservation standards for energy use for battery chargers and
external power supplies.
(E) External power supplies and battery
chargers.--
(i) Energy conservation standards.--
(I) External power
supplies.--Not later than 2
years after the date of
enactment of this subsection,
the Secretary shall issue a
final rule that determines
whether energy conservation
standards shall be issued for
external power supplies or
classes of external power
supplies.
(II) Battery chargers.--Not
later than July 1, 2011, the
Secretary shall issue a final
rule that prescribes energy
conservation standards for
battery chargers or classes of
battery chargers or determine
that no energy conservation
standard is technically
feasible and economically
justified.
(ii) For each product class, any energy conservation
standards issued under clause (i) shall be set at the lowest
level of energy use that--
(I) meets the criteria and procedures of subsections
(o), (p), (q), (r), (s), and (t); and
(II) would result in significant overall annual
energy savings, considering standby mode and other
operating modes.
(2) The Secretary and the Administrator shall collaborate and
develop programs (including programs under section 324A and
other voluntary industry agreements or codes of conduct) that
are designed to reduce standby mode energy use.
(3) Efficiency standards for class a external power
supplies.--
(A) In general.--Subject to subparagraphs (B)
through (E), a class A external power supply
manufactured on or after the later of July 1,
2008, or the date of enactment of this
paragraph shall meet the following standards:
------------------------------------------------------------------------
Active Mode
-------------------------------------------------------------------------
Required Efficiency (decimal
Nameplate Output equivalent of a percentage)
------------------------------------------------------------------------
Less than 1 watt 0.5 times the Nameplate Output
------------------------------------------------------------------------
From 1 watt to not more than 51 The sum of 0.09 times the Natural
watts Logarithm of the Nameplate Output
and 0.5
------------------------------------------------------------------------
Greater than 51 watts 0.85
------------------------------------------------------------------------
No-Load Mode ..................................
-----------------------------------
Nameplate Output Maximum Consumption
-------------------------------------
Not more than 250 watts 0.5 watts
------------------------------------------------------------------------
(B) Noncovered supplies.--A class A external
power supply shall not be subject to
subparagraph (A) if the class A external power
supply is--
(i) manufactured during the period
beginning on July 1, 2008, and ending
on June 30, 2015; and
(ii) made available by the
manufacturer as a service part or a
spare part for an end-use product--
(I) that constitutes the
primary load; and
(II) was manufactured before
July 1, 2008.
(C) Marking.--Any class A external power
supply manufactured on or after the later of
July 1, 2008 or the date of enactment of this
paragraph shall be clearly and permanently
marked in accordance with the External Power
Supply International Efficiency Marking
Protocol, as referenced in the ``Energy Star
Program Requirements for Single Voltage
External AC-DC and AC-AC Power Supplies,
version 1.1'' published by the Environmental
Protection Agency.
(D) Amendment of standards.--
(i) Final rule by july 1, 2011.--
(I) In general.--Not later
than July 1, 2011, the
Secretary shall publish a final
rule to determine whether the
standards established under
subparagraph (A) should be
amended.
(II) Administration.--The
final rule shall--
(aa) contain any
amended standards; and
(bb) apply to
products manufactured
on or after July 1,
2013.
(ii) Final rule by july 1, 2015.--
(I) In general.--Not later
than July 1, 2015 the Secretary
shall publish a final rule to
determine whether the standards
then in effect should be
amended.
(II) Administration.--The
final rule shall--
(aa) contain any
amended standards; and
(bb) apply to
products manufactured
on or after July 1,
2017.
(E) Nonapplication of no-load mode energy
efficiency standards to external power supplies
for certain security or life safety alarms or
surveillance systems.--
(i) Definition of security or life
safety alarm or surveillance system.--
In this subparagraph:
(I) In general.--The term
``security or life safety alarm
or surveillance system'' means
equipment designed and marketed
to perform any of the following
functions (on a continuous
basis):
(aa) Monitor, detect,
record, or provide
notification of
intrusion or access to
real property or
physical assets or
notification of threats
to life safety.
(bb) Deter or control
access to real property
or physical assets, or
prevent the
unauthorized removal of
physical assets.
(cc) Monitor, detect,
record, or provide
notification of fire,
gas, smoke, flooding,
or other physical
threats to real
property, physical
assets, or life safety.
(II) Exclusion.--The term
``security or life safety alarm
or surveillance system'' does
not include any product with a
principal function other than
life safety, security, or
surveillance that--
(aa) is designed and
marketed with a built-
in alarm or theft-
deterrent feature; or
(bb) does not operate
necessarily and
continuously in active
mode.
(ii) Nonapplication of no-load mode
requirements.--The No-Load Mode energy
efficiency standards established by
this paragraph shall not apply to an
external power supply manufactured
before July 1, 2017, that--
(I) is an AC-to-AC external
power supply;
(II) has a nameplate output
of 20 watts or more;
(III) is certified to the
Secretary as being designed to
be connected to a security or
life safety alarm or
surveillance system component;
and
(IV) on establishment within
the External Power Supply
International Efficiency
Marking Protocol, as referenced
in the ``Energy Star Program
Requirements for Single Voltage
External Ac-Dc and Ac-Ac Power
Supplies'', published by the
Environmental Protection
Agency, of a distinguishing
mark for products described in
this clause, is permanently
marked with the distinguishing
mark.
(iii) Administration.--In carrying
out this subparagraph, the Secretary
shall--
(I) require, with appropriate
safeguard for the protection of
confidential business
information, the submission of
unit shipment data on an annual
basis; and
(II) restrict the eligibility
of external power supplies for
the exemption provided under
this subparagraph on a finding
that a substantial number of
the external power supplies are
being marketed to or installed
in applications other than
security or life safety alarm
or surveillance systems.
(4) End-use products.--An energy conservation
standard for external power supplies shall not
constitute an energy conservation standard for the
separate end-use product to which the external power
supply is connected.
(5) Exempt supplies.--
(A) February 10, 2014, rule.--
(i) In general.--An external power
supply shall not be subject to the
final rule entitled ``Energy
Conservation Program: Energy
Conservation Standards for External
Power Supplies'', published at 79 Fed.
Reg. 7845 (February 10, 2014), if the
external power supply--
(I) is manufactured during
the period beginning on
February 10, 2016, and ending
on February 10, 2020;
(II) is marked in accordance
with the External Power Supply
International Efficiency
Marking Protocol, as in effect
on February 10, 2016;
(III) meets, where
applicable, the standards under
paragraph (3)(A), and has been
certified to the Secretary as
meeting International
Efficiency Level IV or higher
of the External Power Supply
International Efficiency
Marking Protocol, as in effect
on February 10, 2016; and
(IV) is made available by the
manufacturer as a service part
or a spare part for an end-use
product that--
(aa) constitutes the
primary load; and
(bb) was manufactured
before February 10,
2016.
(ii) Reporting.--The Secretary may
require manufacturers of products
exempted pursuant to clause (i) to
report annual total units shipped as
service and spare parts that fall below
International Efficiency Level VI.
(iii) Limitation of exemption.--The
Secretary may issue a rule, after
providing public notice and opportunity
for public comment, to limit the
applicability of the exemption
established under clause (i) if the
Secretary determines that the exemption
is resulting in a significant reduction
of the energy savings that would
otherwise result from the final rule
described in such clause.
(B) Amended standards.--
(i) In general.--The Secretary may
exempt an external power supply from
any amended standard under this
subsection if the external power
supply--
(I) is manufactured within
four years of the compliance
date of the amended standard;
(II) complies with applicable
marking requirements adopted by
the Secretary prior to the
amendment;
(III) meets the standards
that were in effect prior to
the amendment; and
(IV) is made available by the
manufacturer as a service part
or a spare part for an end-use
product that--
(aa) constitutes the
primary load; and
(bb) was manufactured
before the compliance
date of the amended
standard.
(ii) Reporting.--The Secretary may
require manufacturers of a product
exempted pursuant to clause (i) to
report annual total units shipped as
service and spare parts that do not
meet the amended standard.
(v) Refrigerated Beverage Vending Machines.--(1) Not later
than 4 years after the date of enactment of this subsection,
the Secretary shall prescribe, by rule, energy conservation
standards for refrigerated bottle or canned beverage vending
machines.
(2) In establishing energy conservation standards under this
subsection, the Secretary shall use the criteria and procedures
prescribed under subsections (o) and (p).
(3) Any energy conservation standard prescribed under this
subsection shall apply to products manufactured 3 years after
the date of publication of a final rule establishing the energy
conservation standard.
(w) Illuminated Exit Signs.--An illuminated exit sign
manufactured on or after January 1, 2006, shall meet the
version 2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
(x) Torchieres.--A torchiere manufactured on or after January
1, 2006--
(1) shall consume not more than 190 watts of power;
and
(2) shall not be capable of operating with lamps that
total more than 190 watts.
(y) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of a low voltage dry-type distribution transformer
manufactured on or after January 1, 2007, shall be the Class I
Efficiency Levels for distribution transformers specified in
table 4-2 of the ``Guide for Determining Energy Efficiency for
Distribution Transformers'' published by the National
Electrical Manufacturers Association (NEMA TP-1-2002).
(z) Traffic Signal Modules and Pedestrian Modules.--Any
traffic signal module or pedestrian module manufactured on or
after January 1, 2006, shall--
(1) meet the performance requirements used under the
Energy Star program of the Environmental Protection
Agency for traffic signals, as in effect on the date of
enactment of this subsection; and
(2) be installed with compatible, electrically
connected signal control interface devices and conflict
monitoring systems.
(aa) Unit Heaters.--A unit heater manufactured on or after
the date that is 3 years after the date of enactment of this
subsection shall--
(1) be equipped with an intermittent ignition device;
and
(2) have power venting or an automatic flue damper.
(bb) Medium Base Compact Fluorescent Lamps.--(1) A bare lamp
and covered lamp (no reflector) medium base compact fluorescent
lamp manufactured on or after January 1, 2006, shall meet the
following requirements prescribed by the August 9, 2001,
version of the Energy Star Program Requirements for Compact
Fluorescent Lamps, Energy Star Eligibility Criteria, Energy-
Efficiency Specification issued by the Environmental Protection
Agency and Department of Energy:
(A) Minimum initial efficacy.
(B) Lumen maintenance at 1000 hours.
(C) Lumen maintenance at 40 percent of rated life.
(D) Rapid cycle stress test.
(E) Lamp life.
(2) The Secretary may, by rule, establish requirements for
color quality (CRI), power factor, operating frequency, and
maximum allowable start time based on the requirements
prescribed by the August 9, 2001, version of the Energy Star
Program Requirements for Compact Fluorescent Lamps.
(3) The Secretary may, by rule--
(A) revise the requirements established under
paragraph (2); or
(B) establish other requirements, after considering
energy savings, cost effectiveness, and consumer
satisfaction.
(cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or
after October 1, 2007, shall have an Energy Factor that meets
or exceeds the following values:
Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
25.00 or less............................................. 1.00
25.01 - 35.00............................................. 1.20
35.01 - 54.00............................................. 1.30
54.01 - 74.99............................................. 1.50
75.00 or more............................................. 2.25.
(2) Dehumidifiers manufactured on or after october 1,
2012.--Dehumidifiers manufactured on or after October
1, 2012, shall have an Energy Factor that meets or
exceeds the following values:
Product Capacity (pints/day): Minimum Energy Factor (liters/
kWh)
Up to 35.00....................... 1.35
35.01-45.00....................... 1.50
45.01-54.00....................... 1.60
54.01-75.00....................... 1.70
Greater than 75.00................ 2.5.
(dd) Commercial Prerinse Spray Valves.--Commercial prerinse
spray valves manufactured on or after January 1, 2006, shall
have a flow rate of not more than 1.6 gallons per minute.
(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp
ballasts (other than specialty application mercury vapor lamp
ballasts) shall not be manufactured or imported after January
1, 2008.
(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All
ceiling fans manufactured on or after January 1, 2007, shall
have the following features:
(i) Fan speed controls separate from any lighting
controls.
(ii) Adjustable speed controls (either more than 1
speed or variable speed).
(iii) The capability of reversible fan action, except
for--
(I) fans sold for industrial applications;
(II) fans sold for outdoor applications; and
(III) cases in which safety standards would
be violated by the use of the reversible mode.
(B) The Secretary may define the exceptions described in
clause (iv) in greater detail, but shall not substantively
expand the exceptions.
(2)(A) Ceiling fan light kits with medium screw base sockets
manufactured on or after January 1, 2007, shall be packaged
with screw-based lamps to fill all screw base sockets.
(B) The screw-based lamps required under subparagraph (A)
shall--
(i) meet the Energy Star Program Requirements for
Compact Fluorescent Lamps, version 3.0, issued by the
Department of Energy; or
(ii) use light sources other than compact fluorescent
lamps that have lumens per watt performance at least
equivalent to comparably configured compact fluorescent
lamps meeting the Energy Star Program Requirements
described in clause (i).
(3) Ceiling fan light kits with pin-based sockets for
fluorescent lamps manufactured on or after January 1, 2007
shall--
(A) meet the Energy Star Program Requirements for
Residential Light Fixtures version 4.0 issued by the
Environmental Protection Agency; and
(B) be packaged with lamps to fill all sockets.
(4)(A) By January 1, 2007, the Secretary shall consider and
issue requirements for any ceiling fan lighting kits other than
those covered in paragraphs (2) and (3), including candelabra
screw base sockets.
(B) The requirements issued under subparagraph (A) shall be
effective for products manufactured 2 years after the date of
the final rule.
(C) If the Secretary fails to issue a final rule by the date
specified in subparagraph (A), any type of ceiling fan lighting
kit described in subparagraph (A) that is manufactured after
January 1, 2009--
(i) shall not be capable of operating with lamps that
total more than 190 watts; and
(ii) shall be packaged with lamps to fill all
sockets.
(5)(A) After January 1, 2010, the Secretary may consider, and
issue, if the requirements of subsections (o) and (p) are met,
amended energy efficiency standards for ceiling fan light kits.
(B) Any amended standards issued under subparagraph (A) shall
apply to products manufactured not earlier than 2 years after
the date of publication of the final rule establishing the
amended standard.
(6)(A) Notwithstanding any other provision of this Act, the
Secretary may consider, and issue, if the requirements of
subsections (o) and (p) are met, energy efficiency or energy
use standards for electricity used by ceiling fans to circulate
air in a room.
(B) In issuing the standards under subparagraph (A), the
Secretary shall consider--
(i) exempting, or setting different standards for,
certain product classes for which the primary standards
are not technically feasible or economically justified;
and
(ii) establishing separate exempted product classes
for highly decorative fans for which air movement
performance is a secondary design feature.
(7) Section 327 shall apply to the products covered in
paragraphs (1) through (4) beginning on the date of enactment
of this subsection, except that any State or local labeling
requirement for ceiling fans prescribed or enacted before the
date of enactment of this subsection shall not be preempted
until the labeling requirements applicable to ceiling fans
established under section 324 take effect.
(gg) Standby Mode Energy Use.--
(1) Definitions.--
(A) In general.--Unless the Secretary
determines otherwise pursuant to subparagraph
(B), in this subsection:
(i) Active mode.--The term ``active
mode'' means the condition in which an
energy-using product--
(I) is connected to a main
power source;
(II) has been activated; and
(III) provides 1 or more main
functions.
(ii) Off mode.--The term ``off mode''
means the condition in which an energy-
using product--
(I) is connected to a main
power source; and
(II) is not providing any
standby or active mode
function.
(iii) Standby mode.--The term
``standby mode'' means the condition in
which an energy-using product--
(I) is connected to a main
power source; and
(II) offers 1 or more of the
following user-oriented or
protective functions:
(aa) To facilitate
the activation or
deactivation of other
functions (including
active mode) by remote
switch (including
remote control),
internal sensor, or
timer.
(bb) Continuous
functions, including
information or status
displays (including
clocks) or sensor-based
functions.
(B) Amended definitions.--The Secretary may,
by rule, amend the definitions under
subparagraph (A), taking into consideration the
most current versions of Standards 62301 and
62087 of the International Electrotechnical
Commission.
(2) Test procedures.--
(A) In general.--Test procedures for all
covered products shall be amended pursuant to
section 323 to include standby mode and off
mode energy consumption, taking into
consideration the most current versions of
Standards 62301 and 62087 of the International
Electrotechnical Commission, with such energy
consumption integrated into the overall energy
efficiency, energy consumption, or other energy
descriptor for each covered product, unless the
Secretary determines that--
(i) the current test procedures for a
covered product already fully account
for and incorporate the standby mode
and off mode energy consumption of the
covered product; or
(ii) such an integrated test
procedure is technically infeasible for
a particular covered product, in which
case the Secretary shall prescribe a
separate standby mode and off mode
energy use test procedure for the
covered product, if technically
feasible.
(B) Deadlines.--The test procedure amendments
required by subparagraph (A) shall be
prescribed in a final rule no later than the
following dates:
(i) December 31, 2008, for battery
chargers and external power supplies.
(ii) March 31, 2009, for clothes
dryers, room air conditioners, and
fluorescent lamp ballasts.
(iii) June 30, 2009, for residential
clothes washers.
(iv) September 30, 2009, for
residential furnaces and boilers.
(v) March 31, 2010, for residential
water heaters, direct heating
equipment, and pool heaters.
(vi) March 31, 2011, for residential
dishwashers, ranges and ovens,
microwave ovens, and dehumidifiers.
(C) Prior product standards.--The test
procedure amendments adopted pursuant to
subparagraph (B) shall not be used to determine
compliance with product standards established
prior to the adoption of the amended test
procedures.
(3) Incorporation into standard.--
(A) In general.--Subject to subparagraph (B),
based on the test procedures required under
paragraph (2), any final rule establishing or
revising a standard for a covered product,
adopted after July 1, 2010, shall incorporate
standby mode and off mode energy use into a
single amended or new standard, pursuant to
subsection (o), if feasible.
(B) Separate standards.--If not feasible, the
Secretary shall prescribe within the final rule
a separate standard for standby mode and off
mode energy consumption, if justified under
subsection (o).
(hh) Metal Halide Lamp Fixtures.--
(1) Standards.--
(A) In general.--Subject to subparagraphs (B)
and (C), metal halide lamp fixtures designed to
be operated with lamps rated greater than or
equal to 150 watts but less than or equal to
500 watts shall contain--
(i) a pulse-start metal halide
ballast with a minimum ballast
efficiency of 88 percent;
(ii) a magnetic probe-start ballast
with a minimum ballast efficiency of 94
percent; or
(iii) a nonpulse-start electronic
ballast with--
(I) a minimum ballast
efficiency of 92 percent for
wattages greater than 250
watts; and
(II) a minimum ballast
efficiency of 90 percent for
wattages less than or equal to
250 watts.
(B) Exclusions.--The standards established
under subparagraph (A) shall not apply to--
(i) fixtures with regulated lag
ballasts;
(ii) fixtures that use electronic
ballasts that operate at 480 volts; or
(iii) fixtures that--
(I) are rated only for 150
watt lamps;
(II) are rated for use in wet
locations, as specified by the
National Electrical Code 2002,
section 410.4(A); and
(III) contain a ballast that
is rated to operate at ambient
air temperatures above 50+C, as
specified by UL 1029-2001.
(C) Application.--The standards established
under subparagraph (A) shall apply to metal
halide lamp fixtures manufactured on or after
the later of--
(i) January 1, 2009; or
(ii) the date that is 270 days after
the date of enactment of this
subsection.
(2) Final rule by january 1, 2012.--
(A) In general.--Not later than January 1,
2012, the Secretary shall publish a final rule
to determine whether the standards established
under paragraph (1) should be amended.
(B) Administration.--The final rule shall--
(i) contain any amended standard; and
(ii) apply to products manufactured
on or after January 1, 2015.
(3) Final rule by january 1, 2019.--
(A) In general.--Not later than January 1,
2019, the Secretary shall publish a final rule
to determine whether the standards then in
effect should be amended.
(B) Administration.--The final rule shall--
(i) contain any amended standards;
and
(ii) apply to products manufactured
after January 1, 2022.
(4) Design and performance requirements.--
Notwithstanding any other provision of law, any
standard established pursuant to this subsection may
contain both design and performance requirements.
(ii) Application Date.--Section 327 applies--
(1) to products for which energy conservation
standards are to be established under subsection (l),
(u), or (v) beginning on the date on which a final rule
is issued by the Secretary, except that any State or
local standard prescribed or enacted for the product
before the date on which the final rule is issued shall
not be preempted until the energy conservation standard
established under subsection (l), (u), or (v) for the
product takes effect; and
(2) to products for which energy conservation
standards are established under subsections (w) through
(hh) on the date of enactment of those subsections,
except that any State or local standard prescribed or
enacted before the date of enactment of those
subsections shall not be preempted until the energy
conservation standards established under subsections
(w) through (hh) take effect.
requirements of manufacturers
Sec. 326. (a) In General.--Each manufacturer of a covered
product to which a rule under section 324 applies shall provide
a label which meets, and is displayed in accordance with, the
requirements of such rule. If such manufacturer or any
distributor, retailer, or private labeler of such product
advertises such product in a catalog from which it may be
purchased, such catalog shall contain all information required
to be displayed on the label, except as otherwise provided by
rule of the Commission. The preceding sentence shall not
require that a catalog contain information respecting a covered
product if the distribution of such catalog commenced before
the effective date of the labeling rule under section 324
applicable to such product.
(b) Notification.--(1) Each manufacturer of a covered product
to which a rule under section 324 applies shall notify the
Secretary or the Commission--
(A) not later than 60 days after the date such rule
takes effect, of the models in current production (and
starting serial numbers of those models) to which such
rule applies; and
(B) prior to commencement of production, of all
models subsequently produced (and starting serial
numbers of those models) to which such rule applies.
(2) If requested by the Secretary or Commission, the
manufacturer of a covered product to which a rule under section
324 applies shall provide, within 30 days of the date of the
request, the data from which the information included on the
label and required by the rule was derived. Data shall be kept
on file by the manufacturer for a period specified in the rule.
(3) When requested--
(A) by the Secretary for purposes of ascertaining
whether a product subject to a standard established in
or prescribed under section 325 is in compliance with
that standard, or
(B) by the Commission for purposes of ascertaining
whether the information set out on a label of a
product, as required under section 324, is accurate,
each manufacturer of such a product shall supply at his expense
a reasonable number of such covered products to any laboratory
designated by the Secretary or the Commission, as the case may
be. Any reasonable charge levied by the laboratory for such
testing shall be borne by the United States, if and to the
extent provided in appropriation Acts.
(4) Each manufacturer of a covered product to which a rule
under section 324 applies shall annually, at a time specified
by the Commission, supply to the Commission relevant data
respecting energy consumption or water use developed in
accordance with the test procedures applicable to such product
under section 323.
(5) A rule under section 323, 324, or 325 may require the
manufacturer or his agent to permit a representative designated
by the Commission or the Secretary to observe any testing
required by this part and inspect the results of such testing.
(6) Voluntary verification programs for air
conditioning, furnace, boiler, heat pump, and water
heater products.--
(A) Reliance on voluntary programs.--For the
purpose of verifying compliance with energy
conservation standards established under
sections 325 and 342 for 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 shall rely on testing conducted by
recognized voluntary verification programs that
are recognized by the Secretary in accordance
with subparagraph (B).
(B) Recognition of voluntary verification
programs.--
(i) In general.--Not later than 180
days after the date of enactment of
this paragraph, the Secretary shall
initiate a negotiated rulemaking in
accordance with subchapter III of
chapter 5 of title 5, United States
Code (commonly known as the
``Negotiated Rulemaking Act of 1990'')
to develop criteria that have consensus
support for achieving recognition by
the Secretary as an approved voluntary
verification program. Any subsequent
amendment to such criteria may be made
only pursuant to a subsequent
negotiated rulemaking in accordance
with subchapter III of chapter 5 of
title 5, United States Code.
(ii) Minimum requirements.--The
criteria developed under clause (i)
shall, at a minimum, ensure that a
voluntary verification program--
(I) is nationally recognized;
(II) is operated by a third
party and not directly operated
by a program participant;
(III) satisfies any
applicable elements of--
(aa) International
Organization for
Standardization
standard numbered
17025; and
(bb) any other
relevant International
Organization for
Standardization
standards identified
and agreed to through
the negotiated
rulemaking under clause
(i);
(IV) at least annually tests
independently obtained products
following the test procedures
established under this title to
verify the certified rating of
a representative sample of
products and equipment within
the scope of the program;
(V) maintains a publicly
available list of all ratings
of products subject to
verification;
(VI) requires the changing of
the performance rating or
removal of the product or
equipment from the program if
testing determines that the
performance rating does not
meet the levels the
manufacturer has certified to
the Secretary;
(VII) requires new program
participants to substantiate
ratings through test data
generated in accordance with
Department of Energy
regulations;
(VIII) allows for challenge
testing of products and
equipment within the scope of
the program;
(IX) requires program
participants to disclose the
performance rating of all
covered products and equipment
within the scope of the program
for the covered product or
equipment;
(X) provides to the
Secretary--
(aa) an annual report
of all test results,
the contents of which
shall be determined
through the negotiated
rulemaking process
under clause (i); and
(bb) test reports, on
the request of the
Secretary, that note
any instructions
specified by the
manufacturer or the
representative of the
manufacturer for the
purpose of conducting
the verification
testing, to be exempted
from disclosure under
section 552(b)(4) of
title 5, United States
Code; and
(XI) satisfies any additional
requirements or standards that
the Secretary shall establish
consistent with this
subparagraph.
(iii) Cessation of recognition.--The
Secretary may only cease recognition of
a voluntary verification program as an
approved program described in
subparagraph (A) upon a finding that
the program is not meeting its
obligations for compliance through
program review criteria developed
during the negotiated rulemaking
conducted under subparagraph (B).
(C) Administration.--
(i) In general.--The Secretary shall
not require--
(I) manufacturers to
participate in a recognized
voluntary verification program
described in subparagraph (A);
or
(II) participating
manufacturers to provide
information that has already
been provided to the Secretary.
(ii) List of covered products.--The
Secretary may maintain a publicly
available list of covered products and
equipment that distinguishes between
products that are and are not covered
products and equipment verified through
a recognized voluntary verification
program described in subparagraph (A).
(iii) Periodic verification
testing.--The Secretary--
(I) shall not subject
products or equipment that have
been verification tested under
a recognized voluntary
verification program described
in subparagraph (A) to periodic
verification testing to verify
the accuracy of the certified
performance rating of the
products or equipment; but
(II) may require testing of
products or equipment described
in subclause (I)--
(aa) if the testing
is necessary--
(AA) to
assess the
overall
performance of
a voluntary
verification
program;
(BB) to
address
specific
performance
issues;
(CC) for use
in updating
test procedures
and standards;
or
(DD) for
other purposes
consistent with
this title; or
(bb) if such testing
is agreed to during the
negotiated rulemaking
conducted under
subparagraph (B).
(D) Effect on other authority.--Nothing in
this paragraph limits the authority of the
Secretary to enforce compliance with any law.
(c) Deadline.--Each manufacturer shall use labels reflecting
the range data required to be disclosed under section
324(c)(1)(B) after the expiration of 60 days following the date
of publication of any revised table of ranges unless the rule
under section 324 provides for a later date. The Commission may
not require labels be changed to reflect revised tables of
ranges more often than annually.
(d) Information Requirements.--(1) For purposes of carrying
out this part, the Secretary may require, under this part or
other provision of law administered by the Secretary, each
manufacturer of a covered product to submit information or
reports to the Secretary with respect to energy efficiency,
energy use, or, in the case of showerheads, faucets, water
closets, and urinals, water use of such covered product and the
economic impact of any proposed energy conservation standard,
as the Secretary determines may be necessary to establish and
revise test procedures, labeling rules, and energy conservation
standards for such product and to insure compliance with the
requirements of this part. In making any determination under
this paragraph, the Secretary shall consider existing public
sources of information, including nationally recognized
certification programs of trade associations.
(2) The Secretary shall exercise authority under this section
in a manner designed to minimize unnecessary burdens on
manufacturers of covered products.
(3) The provisions of section 11(d) of the Energy Supply and
Environmental Coordination Act of 1974 shall apply with respect
to information obtained under this subsection to the same
extent and in the same manner as they apply with respect to
energy information obtained under section 11 of such Act.
* * * * * * *
administrative procedure and judicial review
Sec. 336. (a)(1) In addition to the requirements of section
553 of title 5, United States Code, rules prescribed under
[section 323,] section 322, 323, 324, 325, 327, or 328 of this
part shall afford interested persons an opportunity to present
written and oral data, views, and arguments with respect to any
proposed rule.
(2) In the case of a rule prescribed under section 325, the
Secretary shall, by means of conferences or other informal
procedures, afford any interested person an opportunity to
question--
(A) other interested persons who have made oral
presentations; and
(B) employees of the United States who have made
written or oral presentations with respect to disputed
issues of material fact.
Such opportunity shall be afforded to the extent the Secretary
determines that questioning pursuant to such procedures is
likely to result in a more timely and effective resolution of
such issues.
(3) A transcript shall be kept of any oral presentations made
under this subsection.
(b)(1) Any person who will be adversely affected by a rule
prescribed under [section 323,] section 322, 323, 324, or 325
may, at any time within 60 days after the date on which such
rule is prescribed, file a petition with the United States
court of appeals for the circuit in which such person resides
or has his principal place of business, for judicial review of
such rule. A copy of the petition shall be transmitted by the
clerk of the court to the agency which prescribed the rule.
Such agency shall file in the court the written submissions to,
and transcript of, the proceedings on which the rule was based,
as provided in section 2112 of title 28, United States Code.
(2) Upon the filing of the petition referred to in paragraph
(1), the court shall have jurisdiction to review the rule in
accordance with chapter 7 of title 5, United States Code, and
to grant appropriate relief as provided in such chapter. No
rule under [section 323,] section 322, 323, 324, or 325 may be
affirmed unless supported by substantial evidence.
(3) The judgment of the court affirming or setting aside, in
whole or in part, any such rule shall be final, subject to
review by the Supreme Court of the United States upon
certiorari or certification as provided in section 1254 of
title 28, United States Code.
(4) The remedies provided for in this subsection shall be in
addition to, and not in substitution for, any other remedies
provided by law.
(5) The procedures applicable under this part shall not--
(A) be considered to be modified or affected by any
other provision of law unless such other provision
specifically amends this part (or provisions of law
cited herein); or
(B) be considered to be superseded by any other
provision of law unless such other provision does so in
specific terms by referring to this part and declaring
that such provision supersedes, in whole or in part,
the procedures of this part.
(c) Jurisdiction is vested in the Federal district courts of
the United States over actions brought by--
(1) any adversely affected person to determine
whether a State or local government is complying with
the requirements of this part; and
(2) any person who files a petition under section
325(n) which is denied by the Secretary.
* * * * * * *
Part C--Certain Industrial Equipment
* * * * * * *
PURPOSES AND COVERAGE
Sec. 341. (a) It is the purpose of this part to improve the
efficiency of electric motors and pumps and certain other
industrial equipment in order to conserve the energy resources
of the Nation.
(b) The Secretary may, by rule, include a type of industrial
equipment as covered equipment if he determines that to do so
is necessary to carry out the purposes of this part.
(c) The Secretary may, by rule, include as industrial
equipment articles which are component parts of consumer
products, if he determines that--
(1) such articles are, to a significant extent,
distributed in commerce other than as component parts
for consumer products; and
(2) such articles meet the requirements of section
340(2)(A) (other than clauses (ii) and (iii)).
(d) Modifying Definitions of Covered Equipment.--
(1) In general.--For any covered equipment for which
a definition is provided in section 340, the Secretary
may, by rule, unless prohibited herein, modify such
definition in order to--
(A) address significant changes in the
product or the market occurring since the
definition was established; and
(B) better enable improvements in the energy
efficiency of the equipment as part of an
energy using system.
(2) Antibacksliding exemption.--Section 325(o)(1)
shall not apply to adjustments to covered equipment
definitions made pursuant to this subsection.
(3) Procedure for modifying definition.--
(A) In general.--Notice of any adjustment to
the definition of a type of covered equipment
and an explanation of the reasons therefor
shall be published in the Federal Register and
opportunity provided for public comment.
(B) Consensus required.--Any amendment to the
definition of a type of covered equipment under
this subsection must have consensus support, as
reflected in--
(i) the outcome of negotiations
conducted in accordance with the
subchapter III of chapter 5 of title 5,
United States Code (commonly known as
the ``Negotiated Rulemaking Act of
1990''); or
(ii) the Secretary's receipt of a
statement that is submitted jointly by
interested persons that are fairly
representative of relevant points of
view (including representatives of
manufacturers of covered equipment,
States, and efficiency advocates), as
determined by the Secretary, which
contains a recommended modified
definition for a type of covered
equipment.
(4) Effect of a modified definition.--
(A) For any type or class of equipment which
becomes covered equipment pursuant to this
subsection--
(i) the Secretary may establish test
procedures for such type or class of
covered equipment pursuant to section
343 and energy conservation standards
pursuant to section 325(l);
(ii) the Secretary may prescribe
labeling rules pursuant to section 344
if the Secretary determines that
labeling in accordance with that
section is technologically and
economically feasible and likely to
assist purchasers in making purchasing
decisions;
(iii) section 327 shall begin to
apply to such type or class of covered
equipment in accordance with section
325(ii)(1); and
(iv) standards previously promulgated
under section 325, 342, or 346 shall
not apply to such type or class of
covered equipment.
(B) For any type or class of equipment which
ceases to be covered equipment pursuant to this
subsection the provisions of this part shall no
longer apply to the type or class of equipment.
* * * * * * *
administration, penalties, enforcement, and preemption
Sec. 345. (a) The provisions of section 326 (a), (b), and
(d), the provisions of subsections (l) through (s) of section
325, and section 327 through 336 shall apply with respect to
this part (other than the equipment specified in subparagraphs
(B), (C), (D), (I), (J), and (K) of section 340(1)) to the same
extent and in the same manner as they apply in part B. In
applying such provisions for the purposes of this part--
[(1) references to sections 323, 324, and 325 shall
be considered as references to sections 343, 344, and
342, respectively;]
(1) the references to sections 322, 323, 324, and 325
of this Act shall be considered as references to
sections 341, 343, 344, and 342 of this Act,
respectively;
(2) references to ``this part'' shall be treated as
referring to part C;
(3) the term ``equipment'' shall be substituted for
the term ``product'';
(4) the term ``Secretary'' shall be substituted for
``Commission'' each place it appears (other than in
section 333(c));
(5) section 327(a) shall be applied, in the case of
electric motors, as if the National Appliance Energy
Conservation Act of 1987 was the Energy Policy Act of
1992;
(6) section 327(b)(1) shall be applied as if electric
motors were fluorescent lamp ballasts and as if the
National Appliance Energy Conservation Amendments of
1988 were the Energy Policy Act of 1992;
(7) section 327(b)(4) shall be applied as if electric
motors were fluorescent lamp ballasts and as if
paragraph (5) of section 325(g) were section 342;
(8) notwithstanding any other provision of law, a
regulation or other requirement adopted by a State or
subdivision of a State contained in a State or local
building code for new construction concerning the
energy efficiency or energy use of an electric motor
covered under this part is not superseded by the
standards for such electric motor established or
prescribed under section 342(b) if such regulation or
requirement is identical to the standards established
or prescribed under such section;
(9) in the case of commercial clothes washers,
section 327(b)(1) shall be applied as if the National
Appliance Energy Conservation Act of 1987 was the
Energy Policy Act of 2005; and
(10) section 327 shall apply with respect to the
equipment described in section 340(1)(L) beginning on
the date on which a final rule establishing an energy
conservation standard is issued by the Secretary,
except that any State or local standard prescribed or
enacted for the equipment before the date on which the
final rule is issued shall not be preempted until the
energy conservation standard established by the
Secretary for the equipment takes effect.
(b)(1) The provisions of [section 325(p)(4),] section
325(p)(3), (4), and (6), section 326(a), (b), and (d), section
327(a), and sections 328 through 336 shall apply with respect
to the equipment specified in subparagraphs (B), (C), (D), (I),
(J), and (K) of section 340(1) to the same extent and in the
same manner as they apply in part B. In applying such
provisions for the purposes of such equipment, paragraphs (1),
(2), (3), and (4) of subsection (a) shall apply.
(2)(A) A standard prescribed or established under section
342(a) shall, beginning on the effective date of such standard,
supersede any State or local regulation concerning the energy
efficiency or energy use of a product for which a standard is
prescribed or established pursuant to such section.
(B) Notwithstanding subparagraph (A), a standard prescribed
or established under section 342(a) shall not supersede a
standard for such a product contained in a State or local
building code for new construction if--
(i) the standard in the building code does not
require that the energy efficiency of such product
exceed the applicable minimum energy efficiency
requirement in amended ASHRAE/IES Standard 90.1; and
(ii) the standard in the building code does not take
effect prior to the effective date of the applicable
minimum energy efficiency requirement in amended
ASHRAE/IES Standard 90.1.
(C) Notwithstanding subparagraph (A), a standard prescribed
or established under section 342(a) shall not supersede the
standards established by the State of California set forth in
Table C-6, California Code of Regulations, Title 24, Part 2,
Chapter 2-53, for water-source heat pumps below 135,000 Btu per
hour (cooling capacity) that become effective on January 1,
1993.
(D) Notwithstanding subparagraph (A), a standard prescribed
or established under section 342(a) shall not supersede a State
regulation which has been granted a waiver by the Secretary.
The Secretary may grant a waiver pursuant to the terms,
conditions, criteria, procedures, and other requirements
specified in section 327(d) of this Act.
(c) With respect to any electric motor to which standards are
applicable under section 342(b), the Secretary shall require
manufacturers to certify, through an independent testing or
certification program nationally recognized in the United
States, that such motor meets the applicable standard.
(d)(1) Except as provided in paragraphs (2) and (3), section
327 shall apply with respect to very large commercial package
air conditioning and heating equipment to the same extent and
in the same manner as section 327 applies under part B on the
date of enactment of this subsection.
(2) Any State or local standard issued before the date of
enactment of this subsection shall not be preempted until the
standards established under section 342(a)(9) take effect on
January 1, 2010.
(e)(1)(A) Subsections (a), (b), and (d) of section 326,
subsections (m) through (s) of section 325, and sections 328
through 336 shall apply with respect to commercial
refrigerators, freezers, and refrigerator-freezers to the same
extent and in the same manner as those provisions apply under
part B.
(B) In applying those provisions to commercial refrigerators,
freezers, and refrigerator-freezers, paragraphs (1), (2), (3),
and (4) of subsection (a) shall apply.
(2)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are
established under paragraphs (2) and (3) of section 342(c) to
the same extent and in the same manner as those provisions
apply under part B on the date of enactment of this subsection,
except that any State or local standard issued before the date
of enactment of this subsection shall not be preempted until
the standards established under paragraphs (2) and (3) of
section 342(c) take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(3)(A) Section 327 shall apply to commercial refrigerators,
freezers, and refrigerator-freezers for which standards are
established under section 342(c)(4) to the same extent and in
the same manner as the provisions apply under part B on the
date of publication of the final rule by the Secretary, except
that any State or local standard issued before the date of
publication of the final rule by the Secretary shall not be
preempted until the standards take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(4)(A) If the Secretary does not issue a final rule for a
specific type of commercial refrigerator, freezer, or
refrigerator-freezer within the time frame specified in section
342(c)(5), subsections (b) and (c) of section 327 shall not
apply to that specific type of refrigerator, freezer, or
refrigerator-freezer for the period beginning on the date that
is 2 years after the scheduled date for a final rule and ending
on the date on which the Secretary publishes a final rule
covering the specific type of refrigerator, freezer, or
refrigerator-freezer.
(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the
final rule takes effect.
(5)(A) In the case of any commercial refrigerator, freezer,
or refrigerator-freezer to which standards are applicable under
paragraphs (2) and (3) of section 342(c), the Secretary shall
require manufacturers to certify, through an independent,
nationally recognized testing or certification program, that
the commercial refrigerator, freezer, or refrigerator-freezer
meets the applicable standard.
(B) The Secretary shall, to the maximum extent practicable,
encourage the establishment of at least 2 independent testing
and certification programs.
(C) As part of certification, information on equipment energy
use and interior volume shall be made available to the
Secretary.
(f)(1)(A)(i) Except as provided in clause (ii), section 327
shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(1) to the
same extent and in the same manner as the section applies under
part B on the date of enactment of this subsection.
(ii) Any State standard issued before the date of enactment
of this subsection shall not be preempted until the standards
established under section 342(d)(1) take effect.
(B) In applying section 327 to the equipment under
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
(2)(A)(i) Except as provided in clause (ii), section 327
shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(2) to the
same extent and in the same manner as the section applies under
part B on the date of publication of the final rule by the
Secretary.
(ii) Any State standard issued before the date of publication
of the final rule by the Secretary shall not be preempted until
the standards established under section 342(d)(2) take effect.
(B) In applying section 327 in accordance with subparagraph
(A), paragraphs (1), (2), and (3) of subsection (a) shall
apply.
(3)(A) If the Secretary does not issue a final rule for a
specific type of automatic commercial ice maker within the time
frame specified in section 342(d), subsections (b) and (c) of
section 327 shall no longer apply to the specific type of
automatic commercial ice maker for the period beginning on the
day after the scheduled date for a final rule and ending on the
date on which the Secretary publishes a final rule covering the
specific type of automatic commercial ice maker.
(B) Any State standard issued before the publication of the
final rule shall not be preempted until the standards
established in the final rule take effect.
(4)(A) The Secretary shall monitor whether manufacturers are
reducing harvest rates below tested values for the purpose of
bringing non-complying equipment into compliance.
(B) If the Secretary finds that there has been a substantial
amount of manipulation with respect to harvest rates under
subparagraph (A), the Secretary shall take steps to minimize
the manipulation, such as requiring harvest rates to be within
5 percent of tested values.
(g)(1)(A) If the Secretary does not issue a final rule for
commercial clothes washers within the timeframe specified in
section 342(e)(2), subsections (b) and (c) of section 327 shall
not apply to commercial clothes washers for the period
beginning on the day after the scheduled date for a final rule
and ending on the date on which the Secretary publishes a final
rule covering commercial clothes washers.
(B) Any State or local standard issued before the date on
which the Secretary publishes a final rule shall not be
preempted until the standards established under section
342(e)(2) take effect.
(2) The Secretary shall undertake an educational program to
inform owners of laundromats, multifamily housing, and other
sites where commercial clothes washers are located about the
new standard, including impacts on washer purchase costs and
options for recovering those costs through coin collection.
(h) Walk-In Coolers and Walk-In Freezers.--
(1) Covered types.--
(A) Relationship to other law.--
(i) In general.--Except as otherwise
provided in this subsection, section
327 shall apply to walk-in coolers and
walk-in freezers for which standards
have been established under paragraphs
(1), (2), and (3) of section 342(f) to
the same extent and in the same manner
as the section applies under part B on
the date of enactment of this
subsection.
(ii) State standards.--Any State
standard prescribed before the date of
enactment of this subsection shall not
be preempted until the standards
established under paragraphs (1) and
(2) of section 342(f) take effect.
(B) Administration.--In applying section 327
to equipment under subparagraph (A), paragraphs
(1), (2), and (3) of subsection (a) shall
apply.
(2) Final rule not timely.--
(A) In general.--If the Secretary does not
issue a final rule for a specific type of walk-
in cooler or walk-in freezer within the
timeframe established under paragraph (4) or
(5) of section 342(f), subsections (b) and (c)
of section 327 shall no longer apply to the
specific type of walk-in cooler or walk-in
freezer during the period--
(i) beginning on the day after the
scheduled date for a final rule; and
(ii) ending on the date on which the
Secretary publishes a final rule
covering the specific type of walk-in
cooler or walk-in freezer.
(B) State standards.--Any State standard
issued before the publication of the final rule
shall not be preempted until the standards
established in the final rule take effect.
(3) California.--Any standard issued in the State of
California before January 1, 2011, under title 20 of
the California Code of Regulations, that refers to
walk-in coolers and walk-in freezers, for which
standards have been established under paragraphs (1),
(2), and (3) of section 342(f), shall not be preempted
until the standards established under section 342(f)(4)
take effect.
* * * * * * *
Part G--Energy Conservation Program for Schools and Hospitals
* * * * * * *
guidelines
Sec. 392. (a) the Secretary shall, by rule, not later than 60
days after the date of enactment of this part--
(1) prescribe guidelines for the conduct of
preliminary energy audits, including a description of
the type, number, and distribution of preliminary
energy audits of school and hospital facilities that
will provide a reasonably accurate evaluation of the
energy conservation needs of all such facilities in
each State, and
(2) prescribe guidelines for the conduct of energy
audits.
(b) The Secretary shall, by rule, not later than 90 days
after the date of enactment of this part, prescribe guidelines
for State plans for the implementation of energy conservation
projects in schools and hospitals. The guidelines shall
include--
(1) a description of the factors which the State
energy agency may consider in determining which energy
conservation projects will be given priority in making
grants pursuant to this part, including such factors as
cost, energy consumption, energy savings, and energy
conservation goals,
(2) a description of the suggested criteria to be
used in establishing a State program to identify
persons qualified to implement energy conservation
projects, and
(3) a description of the types of energy conservation
measures deemed appropriate for each region of the
Nation.
(c) Guidelines prescribed under this section may be revised
from time to time after notice and opportunity for comment.
(d) The Secretary shall, by rule prescribe criteria for
determining schools and hospitals which are in a class of
severe hardship. Such criteria shall take into account climate,
fuel costs, fuel availability, ability to provide the non-
Federal share of the costs, and such other factors that he
deems appropriate.
(e) Coordination of Energy Retrofitting Assistance for
Schools.--
(1) Definition of school.--Notwithstanding section
391(6), for the purposes of this subsection, the term
``school'' means--
(A) 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));
(B) an institution of higher education (as
defined in section 102(a) of the Higher
Education Act of 1965 (20 U.S.C. 1002(a)));
(C) a school of the defense dependents'
education system under the Defense Dependents'
Education Act of 1978 (20 U.S.C. 921 et seq.)
or established under section 2164 of title 10,
United States Code;
(D) a school operated by the Bureau of Indian
Affairs;
(E) a tribally controlled school (as defined
in section 5212 of the Tribally Controlled
Schools Act of 1988 (25 U.S.C. 2511)); and
(F) a Tribal College or University (as
defined in section 316(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059c(b))).
(2) Establishment of clearinghouse.--The Secretary,
acting through the Office of Energy Efficiency and
Renewable Energy, shall establish a clearinghouse to
disseminate information regarding available Federal
programs and financing mechanisms that may be used to
help initiate, develop, and finance energy efficiency,
distributed generation, and energy retrofitting
projects for schools.
(3) Requirements.--In carrying out paragraph (2), the
Secretary shall--
(A) consult with appropriate Federal agencies
to develop a list of Federal programs and
financing mechanisms that are, or may be, used
for the purposes described in paragraph (2);
and
(B) coordinate with appropriate Federal
agencies to develop a collaborative education
and outreach effort to streamline
communications and promote available Federal
programs and financing mechanisms described in
subparagraph (A), which may include the
development and maintenance of a single online
resource that includes contact information for
relevant technical assistance in the Office of
Energy Efficiency and Renewable Energy that
States, local education agencies, and schools
may use to effectively access and use such
Federal programs and financing mechanisms.
* * * * * * *
[Part I--Off-Highway Motor Vehicles
[off-highway motor vehicle conservation study
[Sec. 385. Not later than 1 year after the date of the
enactment of this section, the Secretary of Transportation
shall complete a study of the energy conservation potential of
recreational motor vehicles, including, but not limited to,
aircraft and motor boats which are designed for recreational
use, and shall submit a report to the President and to the
Congress containing the results of such study.]
PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS
* * * * * * *
SEC. 400EE. STUDIES AND REPORTS.
[(a) Methanol Study.--(1) The Secretary shall study methanol
plants, including the costs and practicability of such plants,
that are--
[(A) capable of utilizing current domestic supplies
of unutilized natural gas;
[(B) relocatable; or
[(C) suitable for natural gas to methanol conversion
by natural gas distribution companies.
[(2) For purposes of this subsection, the term ``unutilized
natural gas'' means gas that is available in small remote
fields and cannot be economically transported to natural gas
pipelines, or gas the quality of which is so poor that
extensive and uneconomic pretreatment is required prior to its
introduction into the natural gas distribution system.
[(3) The Secretary shall submit a report under this
subsection to the Committees on Commerce, Science, and
Transportation and Governmental Affairs of the Senate, and the
Committee on Energy and Commerce of the House of
Representatives, no later than September 30, 1990.]
[(b)] (a) Independent Environmental Study.--(1) The
Administrator of the Environmental Protection Agency shall
submit to the Committees on Commerce, Science, and
Transportation and Governmental Affairs of the Senate, and the
Committee on Energy and Commerce of the House of
Representatives, in December of 1990, and once every two years
thereafter, a report which includes--
(A) a comprehensive analysis of the air quality,
global climate change, and other positive and negative
environmental impacts, if any, including fuel
displacement effects, associated with the production,
storage, distribution, and use of all alternative motor
vehicle fuels under the Alternative Motor Fuels Act of
1988, as compared to gasoline and diesel fuels; and
(B) an extended reasonable forecast of the change, if
any, in air quality, global climate change, and other
environmental effects of producing, storing,
distributing, and using alternative motor vehicle
fuels, utilizing such reasonable energy security,
policy, economic, and other scenarios as may be
appropriate.
(2) In carrying out the study under this subsection, the
Administrator of the Environmental Protection Agency shall
consult with the Secretaries of Energy and Transportation.
Nothing in this paragraph shall be construed to require such
Administrator to obtain the approval of the Secretary of Energy
or the Secretary of Transportation for any actions taken under
this subsection.
(3) There are authorized to be appropriated to carry out the
purposes of this subsection $500,000.
[(c)] (b) Public Participation.--Adequate opportunity shall
be provided for public comment on the reports required by this
section before they are submitted to the Congress, and a
summary of such comments shall be attached to such reports.
* * * * * * *
----------
ENERGY POLICY ACT OF 1992
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 1992''.
(b) Table of Contents.--
TITLE I--ENERGY EFFICIENCY
* * * * * * *
Subtitle F--Federal Agency Energy Management
* * * * * * *
[Sec. 154. Report by General Services Administration]
* * * * * * *
[Sec. 156. Intergovernmental energy management planning and
coordination.]
* * * * * * *
[Sec. 160. Inspector General Review and agency accountability.]
Sec. 160. Inspector General review.
[Sec. 161. Procurement and identification of energy efficient products.]
* * * * * * *
TITLE I--ENERGY EFFICIENCY
* * * * * * *
Subtitle F--Federal Agency Energy Management
* * * * * * *
[SEC. 154. REPORT BY GENERAL SERVICES ADMINISTRATION.
[Not later than one year after the date of the enactment of
this Act, and annually thereafter, the Administrator of General
Services shall report to the Committee on Governmental Affairs
and the Committee on Energy and Natural Resources of the Senate
and the Committee on Energy and Commerce, the Committee on
Government Operations, and the Committee on Public Works and
Transportation of the House of Representatives on the
activities of the General Services Administration conducted
pursuant to this subtitle.]
* * * * * * *
[SEC. 156. INTERGOVERNMENTAL ENERGY MANAGEMENT PLANNING AND
COORDINATION.
[(a) Conference Workshops.--The Administrator of General
Services, in consultation with the Secretary and the Task
Force, shall hold regular, biennial conference workshops in
each of the 10 standard Federal regions on energy management,
conservation, efficiency, and planning strategy. The
Administrator shall work and consult with the Department of
Energy and other Federal agencies to plan for particular
regional conferences. The Administrator shall invite Department
of Energy, State, local, tribal, and county public officials
who have responsibilities for energy management or may have an
interest in such conferences and shall seek the input of, and
be responsive to, the views of such officials in the planning
and organization of such workshops.
[(b) Focus of Workshops.--Such workshops and conferences
shall focus on the following (but may include other topics):
[(1) Developing strategies among Federal, State,
tribal, and local governments to coordinate energy
management policies and to maximize available
intergovernmental energy management resources within
the region regarding the use of governmental facilities
and buildings.
[(2) The design, construction, maintenance, and
retrofitting of governmental facilities to incorporate
energy efficient techniques.
[(3) Procurement and use of energy efficient
products.
[(4) Dissemination of energy information on
innovative programs, technologies, and methods which
have proven successful in government.
[(5) Technical assistance to design and incorporate
effective energy management strategies.
[(c) Establishment of Workshop Timetable.--As a part of the
first report to be submitted pursuant to section 154, the
Administrator shall set forth the schedule for the regional
energy management workshops to be conducted under this section.
Not less than five such workshops shall be held by September
30, 1993, and at least one such workshop shall be held in each
of the 10 Federal regions every two years beginning on
September 30, 1993.]
* * * * * * *
SEC. 159. FEDERAL ENERGY COST ACCOUNTING AND MANAGEMENT.
(a) Guidelines.--Not later than 120 days after the date of
the enactment of this Act, the Director of the Office of
Management and Budget, in cooperation with the Secretary, the
Administrator of General Services, and the Secretary of
Defense, shall establish guidelines to be employed by each
Federal agency to assess accurate energy consumption for all
buildings or facilities which the agency owns, operates,
manages or leases, where the Government pays utilities separate
from the lease and the Government operates the leased space.
Such guidelines are to be used in reports required under
section 548 of the National Energy Conservation Policy Act (42
U.S.C. 8258). Each agency shall implement such guidelines no
later than 120 days after their establishment. Each facility
energy manager shall maintain energy consumption and energy
cost records for review by the Inspector General, the Congress,
and the general public.
(b) Contents of Guidelines.--Such guidelines shall include
the establishment of a monitoring system to determine--
(1) which facilities are the most costly to operate
when measured on an energy consumption per square foot
basis or other relevant analytical basis;
(2) unusual or abnormal changes in energy
consumption; and
(3) the accuracy of utility charges for electric and
gas consumption.
[(c) Federally Leased Space Energy Reporting Requirement.--
The Administrator of General Services shall include, in each
report submitted under section 154, the estimated energy cost
of leased buildings or space in which the Federal Government
does not directly pay the utility bills.]
SEC. 160. INSPECTOR GENERAL REVIEW [AND AGENCY ACCOUNTABILITY].
[(a) Audit Survey.--Not later than 120 days after the date of
the enactment of this Act, each Inspector General created to
conduct and supervise audits and investigations relating to the
programs and operations of the establishments listed in section
11(2) of the Inspector General Act of 1978 (5 U.S.C. App.), and
the Chief Postal Inspector of the United States Postal Service,
in accordance with section 8E(f)(1) as established by section
8E(a)(2) of the Inspector General Act Amendments of 1988
(Public Law 100-504) shall--
[(1) identify agency compliance activities to meet
the requirements of section 543 of the National Energy
Conservation Policy Act (42 U.S.C. 8253) and any other
matters relevant to implementing the goals of such Act;
and
[(2) determine if the agency has the internal
accounting mechanisms necessary to assess the accuracy
and reliability of energy consumption and energy cost
figures required under such section.
[(b) Presidents Council on Integrity and Efficiency Report to
Congress.--Not later than 150 days after the date of the
enactment of this Act, the President's Council on Integrity and
Efficiency shall submit a report to the Committee on Energy and
Natural Resources and the Committee on Governmental Affairs of
the Senate, the Committee on Energy and Commerce, the Committee
on Government Operations, and the Committee on Public Works and
Transportation of the House of Representatives, on the review
conducted by the Inspector General of each agency under this
section.
[(c) Inspector General Review.--] Each Inspector General
established under section 2 of the Inspector General Act of
1978 (5 U.S.C. App.) is encouraged to conduct periodic reviews
of agency compliance with part 3 of title V of the National
Energy Conservation Policy Act, the provisions of this
subtitle, and other laws relating to energy consumption. Such
reviews shall not be inconsistent with the performance of the
required duties of the Inspector General's office.
[SEC. 161. PROCUREMENT AND IDENTIFICATION OF ENERGY EFFICIENT PRODUCTS.
[(a) Procurement.--The Administrator of General Services, the
Secretary of Defense, and the Director of the Defense Logistics
Agency, each shall undertake a program to include energy
efficient products in carrying out their procurement and supply
functions.
[(b) Identification Program.--The Administrator of General
Services, the Secretary of Defense, and the Director of the
Defense Logistics Agency, in consultation with the Secretary of
Energy, each shall implement, in conjunction with carrying out
their procurement and supply functions, a program to identify
and designate those energy efficient products that offer
significant potential savings, using, to the extent
practicable, the life cycle cost methods and procedures
developed under section 544 of the National Energy Conservation
Policy Act (42 U.S.C. 8254). The Secretary of Energy shall, to
the extent necessary to carry out this section and after
consultation with the aforementioned agency heads, provide
estimates of the degree of relative energy efficiency of
products.
[(c) Guidelines.--The Administrator for Federal Procurement
Policy, in consultation with the Administrator of General
Services, the Secretary of Energy, the Secretary of Defense,
and the Director of the Defense Logistics Agency, shall issue
guidelines to encourage the acquisition and use by all Federal
agencies of products identified pursuant to this section. The
Secretary of Defense and the Director of the Defense Logistics
Agency shall consider, and place emphasis on, the acquisition
of such products as part of the Agency's ongoing review of
military specifications.
[(d) Report to Congress.--Not later than December 31 of 1993
and of each year thereafter, the Secretary of Energy, in
consultation with the Administrator for Federal Procurement
Policy, the Administrator of General Services, the Secretary of
Defense, and the Director of the Defense Logistics Agency,
shall report on the progress, status, activities, and results
of the programs under subsections (a), (b), and (c). The report
shall include--
[(1) the types and functions of each product
identified under subsection (b), and efforts undertaken
by the Administrator of General Services, the Secretary
of Defense, and the Director of the Defense Logistics
Agency to encourage the acquisition and use of such
products;
[(2) the actions taken by the Administrator of
General Services, the Secretary of Defense, and the
Director of the Defense Logistics Agency to identify
products under subsection (b), the barriers which
inhibit implementation of identification of such
products, and recommendations for legislative action,
if necessary;
[(3) progress on the development and issuance of
guidelines under subsection (c);
[(4) an indication of whether energy cost savings
technologies identified by the Advanced Building
Technology Council, under section 809(h) of the
National Housing Act (12 U.S.C. 1701j-2), have been
used in the identification of products under subsection
(b);
[(5) an estimate of the potential cost savings to the
Federal Government from acquiring products identified
under subsection (b) with respect to which energy is a
significant component of life cycle cost, based on the
quantities of such products that could be utilized
throughout the Government; and
[(6) the actual quantities acquired of products
described in paragraph (5).]
* * * * * * *
----------
POWERPLANT AND INDUSTRIAL FUEL USE ACT OF 1978
* * * * * * *
SEC. 101. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Powerplant
and Industrial Fuel Use Act of 1978''.
(b) Table of Contents.--
* * * * * * *
TITLE VII--ADMINISTRATION AND ENFORCEMENT
* * * * * * *
Subtitle E--Studies
[Sec. 741. National coal policy study.
[Sec. 742. Coal industry performance and competition study.]
Sec. 743. Impact on employees.
[Sec. 744. Study of compliance problems of small electric utility
systems.
[Sec. 746. Socioeconomic impacts of increased coal production and other
energy development.
[Sec. 747. Use of petroleum and natural gas in combustors.]
* * * * * * *
TITLE VIII--MISCELLANEOUS PROVISIONS
* * * * * * *
[Sec. 807. Submission of reports.
[Sec. 808. Electric utility conservation plan.]
* * * * * * *
TITLE VII--ADMINISTRATION AND ENFORCEMENT
* * * * * * *
Subtitle B--Information and Reporting
* * * * * * *
SEC. 712. COMPLIANCE REPORT.
[(a) Generally.--] Any person owning, operating, or proposing
to operate one or more existing electric powerplants required
to come into compliance with the prohibitions of this Act shall
on or before January 1, 1980, and annually thereafter, submit
to the Secretary a report identifying all such existing
electric powerplants owned or operated by such person. Such
report shall--
(1) set forth the anticipated schedule for compliance
with the applicable requirements and prohibitions by
each such electric powerplant;
(2) indicate proposed or existing contracts or other
commitments or good faith negotiations for such
contracts or commitments for coal or another alternate
fuel, equipment, or combinations thereof, which would
enable such powerplant to comply with such
prohibitions; and
(3) identify those electric powerplants, if any, for
which application for temporary or permanent exemption
from the prohibitions of this Act may be filed.
[(b) Report on Implementation of Section 808 Plan.--Any
electric utility required to submit a conservation plan under
section 808 shall annually submit to the Secretary a report
identifying the steps taken during the preceding year to
implement such plan.]
* * * * * * *
Subtitle E--Studies
[SEC. 741. NATIONAL COAL POLICY STUDY.
[(a) Study.--The President, acting through the Secretary and
the Administrator of the Environmental Protection Agency, shall
make a full and complete investigation and study of the
alternative national uses of coal available in the United
States to meet the Nation's energy requirements consistent with
national policies for the protection and enhancement of the
quality of the environment and for economic recovery and full
employment. In particular the study should identify and
evaluate--
[(1) current and prospective coal requirements of the
United States;
[(2) current and prospective voluntary and mandatory
energy conservation measures and their potential for
reduction of the United States coal requirements;
[(3) current and prospective coal resource
production, transportation, conversion, and utilization
requirements;
[(4) the extent and adequacy of coal research,
development, and demonstration programs being carried
out by Federal, State, local, and nongovernmental
entities (including financial resources, manpower, and
statutory authority);
[(5) programs for the development of coal mining
technologies which increase coal production and
utilization while protecting the health and safety of
coal miners;
[(6) alternative strategies for meeting anticipated
United States coal requirements, consistent with
achieving other national goals, including national
security and environmental protection;
[(7) existing and prospective governmental policies
and laws affecting the coal industry with the view of
determining what, if any, changes in and implementation
of such policies and laws may be advisable in order to
consolidate, coordinate, and provide an effective and
equitable national energy policy consistent with other
national policies; and
[(8) the most efficient use of the Nation's coal
resources considering economic (including capital and
consumer costs, and balance of payments), social
(including employment), environmental, technological,
national defense, and other aspects.
[(b) Report.--Within 18 months after the effective date of
this Act, the President shall submit to the Congress a report
with respect to the studies and investigations, together with
findings and recommendations in order that the Congress may
have such information in a timely fashion. Such report shall
include the President's determinations and recommendations with
respect to--
[(1) the Nation's projected coal needs nationally and
regionally, for the next 2 decades with particular
reference to electric power;
[(2) the coal resources available or which must be
developed to meet those needs, including, as
applicable, the programs for research, development, and
demonstration necessary to provide technological
advances which may greatly enhance the Nation's ability
to efficiently and economically utilize its fuel
resources, consistent with applicable environmental
requirements;
[(3) the air, water, and other pollution created by
coal requirements, including any programs to overcome
promptly and efficiently any technological or economic
barriers to the elimination of such pollution;
[(4) the existing policies and programs of the
Federal Government and of State and local governments,
which have any significant impact on the availability,
production or efficient and economic utilization of
coal resources and on the ability to meet the Nation's
energy needs and environmental requirements; and
[(5) the adequacy of various transportation systems,
including roads, railroads, and waterways to meet
projected increases in coal production and utilization.
Before submitting a report to the Congress under subsection
(b), the President shall publish in the Federal Register a
notice and summary of the proposed report, make copies of such
report available, and accord interested persons an opportunity
(of not less than 90 days' duration) to present written
comments; and shall make such modifications of such report as
he may consider appropriate on the basis of such comments.
[(c) Authorization of Appropriations.--There is hereby
authorized to be appropriated to the Secretary for allocation
between the Department of Energy and the Environmental
Protection Agency for fiscal years 1979 and 1980, not to exceed
$18,000,000, for use in carrying out the purposes of this
section.]
* * * * * * *
[SEC. 744. STUDY OF COMPLIANCE PROBLEM OF SMALL ELECTRIC UTILITY
SYSTEMS.
[(a) Study.--The Secretary shall conduct a study of the
problems of compliance with this Act experienced by those
electric utility systems which have a total system generating
capacity of less than 2,000 megawatts. The Secretary shall
report his findings and his recommendations to the Congress not
later than 2 years after the effective date of this Act.
[(b) Authorization of Appropriations.--There is authorized to
be appropriated to the Secretary for the fiscal year 1979 not
to exceed $500,000 to carry out the provisions of this section.
[SEC. 746. SOCIOECONOMIC IMPACTS OF INCREASED COAL PRODUCTION AND OTHER
ENERGY DEVELOPMENT.
[(a) Committee.--There is hereby established an interagency
committee composed of the heads of the Departments of Energy,
Commerce, Interior, Transportation, Housing and Urban
Development, and Health, Education, and Welfare, the
Environmental Protection Agency, the Appalachian Regional
Commission, the Farmers' Home Administration, the Office of
Management and Budget, and such other Federal agencies as the
Secretary shall designate. In carrying out its functions the
committee shall consult with the National Governors' Conference
and interested persons, organizations, and entities. The
chairman of the committee shall be designated by the President.
The committee shall terminate 90 days after the submission of
its report under subsection (c).
[(b) Functions of Committee.--It is the function of the
committee to conduct a study of the socioeconomic impacts of
expanded coal production and rapid energy development in
general, on States, including local communities, and on the
public, including the adequacy of housing and public,
recreational, and cultural facilities for coal miners and their
families and the effect of any Federal or State laws or
regulations on providing such housing and facilities. The
committee shall gather data and information on--
[(1) the level of assistance provided under this Act
and any other programs related to impact assistance,
[(2) the timeliness of assistance in meeting impacts
caused by Federal decisions on energy policy as well as
private sector decisions, and
[(3) the obstacles to effective assistance contained
in regulations of existing programs related to impact
assistance.
[(c) Report.--Within 1 year after the effective date of this
Act, the committee shall submit a detailed report on the
results of such study to the Congress, together with any
recommendations for additional legislation it may consider
appropriate.
[SEC. 747. USE OF PETROLEUM AND NATURAL GAS IN COMBUSTORS.
[The Secretary shall conduct a detailed study of the uses of
petroleum and natural gas as a primary energy source for
combustors and installations not subject to the prohibitions of
this Act. In conducting such study, the Secretary shall--
[(1) identify those categories of major fuel-burning
installations in which the substitution of coal or
other alternate fuels for petroleum and natural gas is
economically and technically feasible, and
[(2) determine the estimated savings of natural gas
and petroleum expected from such substitution.
Within 1 year after the effective date of this Act, the
Secretary shall submit a detailed report on the results of such
study to the Congress, together with any recommendations for
legislation he may consider appropriate.]
* * * * * * *
TITLE VIII--MISCELLANEOUS PROVISIONS
* * * * * * *
[SEC. 807. SUBMISSION OF REPORTS.
[Copies of any report required by this Act to be submitted to
the Congress shall be separately submitted to the Committee on
Interstate and Foreign Commerce of the House of Representatives
and the Committee on Energy and Natural Resources of the
Senate.
[SEC. 808. ELECTRIC UTILITY CONSERVATION PLAN.
[(a) Applicability.--An electric utility is subject to this
subsection if--
[(1) the utility owns or operates any existing
electric powerplant in which natural gas was used as a
primary energy source at any time during the 1-year
period ending on the date of the enactment of this
section, and
[(2) the utility plans to use natural gas as a
primary energy source in any electric powerplant.
[(b) Submission and Approval of Plan.--The Secretary shall
require each electric utility subject to this section to--
[(1) submit, within 1 year after the date of the
enactment of this section, and have approved by the
Secretary, a conservation plan which meets the
requirements of subsection (c); and
[(2) implement such plan during the 5-year period
beginning on the date of the initial approval of such
plan.
[(c) Contents of Plan.--(1) Any conservation plan under this
section shall set forth means determined by the utility to
achieve conservation of electric energy not later than the 5th
year after its initial approval at a level, measured on an
annual basis, at least equal to 10 percent of the electric
energy output of that utility during the most recent 4 calendar
quarters ending prior to the date of the enactment of this
section which is attributable to natural gas.
[(2) The conservation plan shall include--
[(A) all activities required for such utility by part
1 of title II of the National Energy Conservation
Policy Act;
[(B) an effective public information program for
conservation; and
[(C) such other measures as the utility may consider
appropriate.
[(3) Any such plan may set forth a program for the use of
renewable energy sources (other than hydroelectric power).
[(4) Any such plan shall contain procedures to permit the
amounts expended by such utility in developing and implementing
the plan to be recovered in a manner specified by the
appropriate State regulatory authority (or by the utility in
the case of a nonregulated utility).
[(d) Plan Approval.--(1) The Secretary shall, by order,
approve or disapprove any conservation plan proposed under this
subsection by an electric utility within 120 days after its
submission. The Secretary shall approve any such proposed plan
unless the Secretary finds that such plan does not meet the
requirements of subsection (c) and states in writing the
reasons therefor.
[(2) In the event the Secretary disapproves under paragraph
(1) the plan originally submitted, the Secretary shall provide
a reasonable period of time for resubmission.
[(3) An electric utility may amend any approved plan, except
that the plan as amended shall be subject to approval in
accordance with paragraph (1).]
* * * * * * *
----------
EMERGENCY ENERGY CONSERVATION ACT OF 1979
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Emergency
Energy Conservation Act of 1979''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
* * * * * * *
TITLE II--EMERGENCY ENERGY CONSERVATION
[Sec. 201. Findings and purposes.]
Sec. 201. Purposes.
* * * * * * *
Part B--Other Automobile Fuel Purchase Measures
[Sec. 221. Minimum automobile fuel purchases.
[Sec. 222. Out-of-State vehicles to be exempted from odd-even motor fuel
purchase restrictions.]
* * * * * * *
Part D--Studies
[Sec. 241. Studies.]
* * * * * * *
TITLE II--EMERGENCY ENERGY CONSERVATION
SEC. 201. [FINDINGS AND] PURPOSES.
[(a) Findings.--The Congress finds that--
[(1) serious disruptions have recently occurred in
the gasoline and diesel fuel markets of the United
States;
[(2) it is likely that such disruptions will recur;
[(3) interstate commerce is significantly affected by
those market disruptions;
[(4) an urgent need exists to provide for emergency
conservation and other measures with respect to
gasoline, diesel fuel, home heating oil, and other
energy sources in potentially short supply in order to
cope with market disruptions and protect interstate
commerce; and
[(5) up-to-date and reliable information concerning
the supply and demand of gasoline, diesel fuel, and
other related data is not available to the President,
the Congress, or the public.
[(b) Purposes.--] The purposes of this title are to--
(1) provide a means for the Federal Government,
States, and units of local government to establish
emergency conservation measures with respect to
gasoline, diesel fuel, home heating oil, and other
energy sources which may be in short supply;
(2) establish other emergency measures to alleviate
disruptions in gasoline and diesel fuel markets;
(3) obtain data concerning such fuels; and
(4) protect interstate commerce.
* * * * * * *
Part B--Other Automobile Fuel Purchase Measures
[SEC. 221. MINIMUM AUTOMOBILE FUEL PURCHASES.
[(a) General Rule.--If the provisions of this subsection are
made applicable under subsection (c), no person shall purchase
motor fuel from a motor fuel retailer in any transaction for
use in any automobile or other vehicle unless--
[(1) the price for the quantity purchased and placed
into the fuel tank of that vehicle equals or exceeds
$5.00; or
[(2) in any case in which the amount paid for the
quantity of motor fuel necessary to fill the fuel tank
of that vehicle to capacity is less than $5.00, such
person pays to the retailer an additional amount so
that the total amount paid in that transaction equals
$5.00.
Any person selling motor fuel in transactions to which the
provisions of this subsection apply shall display at the point
of sale notice of such provisions in accordance with
regulations prescribed by the Secretary.
[(b) $7.00 To Be Applicable in the Case of 8-Cylinder
Vehicles.--In applying subsection (a) in the case of any
vehicle with an engine having 8 cylinders (or more), ``$7.00''
shall be substituted for ``$5.00''.
[(c) Applicability.--(1) Unless applicable pursuant to
paragraph (2), the requirements of subsection (a) shall apply
in any State and shall be administered and enforced as provided
in subsection (g) only if--
[(A) the Governor of that State submits a request to
the Secretary to have such requirements applicable in
that State; and
[(B) the attorney general of that State has found
that (i) absent a delegation of authority under a
Federal law, the Governor lacks the authority under the
laws of the State to invoke comparable requirements,
(ii) under applicable State law, the Governor and other
appropriate State officers and employees are not
prevented from administering and enforcing such
requirements under a delegation of authority pursuant
to Federal law, and (iii) if implemented such
requirements would not be contrary to State law.
Subject to paragraph (2), such provisions shall cease to apply
in any State if the Governor of the State withdraws any request
under subparagraph (A).
[(2) The requirements of subsection (a) shall apply in every
State if there is in effect a finding by the President that
nationwide implementation of such requirements would be
appropriate and consistent with the purposes of this title.
[(3) Such requirements shall take effect in any State
beginning on the 5th day after the Secretary or the President
(as the case may be) publishes notice in the Federal Register
of the applicability of the requirements to the State pursuant
to paragraph (1) or (2).
[(4) Notwithstanding any other provision of law, the
authority vested in the President under paragraph (2) may not
be delegated.
[(d) Exemptions.--The requirements of subsection (a) shall
not apply to any motorcycle or motorpowered bicycle, or to any
comparable vehicle as may be determined by the Secretary by
regulation.
[(e) Adjustment of Minimum Levels.--The Secretary may
increase the $5.00 and $7.00 amounts specified in subsections
(a) and (b) if the Secretary considers it appropriate.
Adjustments under this subsection shall be only in even dollar
amounts.
[(f) Civil Penalties.--(1) Whoever violates the requirements
of subsection (a) shall be subject to a civil penalty of not to
exceed $100 for each violation.
[(2) Any penalty under paragraph (1) may be assessed by the
court in any action under this section brought in any
appropriate United States district court or any other court of
competent jurisdiction. Except to the extent provided in
paragraph (3), any such penalty collected shall be deposited
into the general fund of the United States Treasury as
miscellaneous receipts.
[(3) The Secretary may enter into an agreement with the
Governor of any State under which amounts collected pursuant to
this subsection may be collected and retained by the State to
the extent necessary to cover costs incurred by that State in
connection with the administration and enforcement of the
requirements of subsection (a) the authority for which is
delegated under subsection (g).
[(g) Administration and Enforcement Delegated to States.--(1)
There is hereby delegated to the Governor of any State, and
other State and local officers and employees designated by the
Governor, the authority to administer and enforce, within that
State, any provision of this part which is to be administered
and enforced in accordance with this section. Such authority
includes the authority to institute actions on behalf of the
United States for the imposition and collection of civil
penalties under subsection (f).
[(2)(A) All delegation of authority under paragraph (1) with
respect to any State shall be considered revoked effective (i)
upon the receipt of a written waiver of authority signed by the
Governor of such State or (ii) upon a determination by the
President that such delegation should be revoked, but only to
the extent of that determination.
[(B) If at any time the conditions of subsection (c)(1)(B)
are no longer satisfied in any State to which a delegation has
been made under paragraph (1), the attorney general of that
State shall transmit a written statement to that effect to the
Governor of that State and to the President. Such delegation
shall be considered revoked effective upon receipt by the
President of such written statement and a determination by the
President that such conditions are no longer satisfied, but
only to the extent of that determination and consistent with
such attorney general's statement.
[(C) Any revocation under subparagraph (A) or (B) shall not
affect any action or pending proceedings, administrative or
civil, not finally determined on the date of such revocation,
nor any administrative or civil action or proceeding, whether
or not pending, based on any act committed or liability
incurred prior to such revocation.
[(D) The Secretary shall administer and enforce any provision
of this part which has been made effective under subsection
(c)(2) and for which a delegation of authority is considered
revoked under subparagraph (A).
[(h) Coordination With Other Law.--The charging and
collecting of amounts referred to in subsection (a)(2) under
the requirements of subsection (a), or similar amounts
collected under comparable requirements under any State law,
shall not be considered a violation of--
[(1) the Emergency Petroleum Allocation Act of 1973
or any regulation thereunder; or
[(2) any Federal or State law requiring the labeling
or disclosure of the maximum price per gallon of any
fuel.
[SEC. 222. OUT-OF-STATE VEHICLES TO BE EXEMPTED FROM ODD-EVEN MOTOR
FUEL PURCHASE RESTRICTIONS.
[(a) General Rule.--Notwithstanding any provision of any
Federal, State, or local law, any odd-even fuel purchase plan
in effect in any State may not prohibit the sale of motor fuel
to any person for use in a vehicle bearing a license plate
issued by any authority other than that State or a State
contiguous to that State.
[(b) Definitions.--For purposes of this section the term
``odd-even fuel purchase plan'' means any motor fuel sales
restriction under which a person may purchase motor fuel for
use in any vehicle only on days (or other periods of time)
determined on the basis of a number or letter appearing on the
license plate of that vehicle (or on any similar basis).]
* * * * * * *
Part D--Studies
[SEC. 241. STUDIES.
[(a) Study of Commercial and Industrial Storage of Fuel.--Not
later than 180 days after the date of the enactment of this
part, the Secretary shall conduct a study and report to the
Congress regarding the commercial and industrial storage of
gasoline and middle distillates (other than storage in
facilities which have capacities of less than 500 gallons or
storage used exclusively and directly for agricultural,
residential, petroleum refining, or pipeline transportation
purposes).
[(b) Contents of Report.--Such report shall--
[(1) indicate to what extent storage activities have
increased since November 1, 1978, and what business
establishments (including utilities) have been
involved;
[(2) the estimated amount of gasoline and middle
distillates (in the aggregate and by type and region)
which are in storage within the United States at the
time of the study, the amounts which were in storage at
the same time during the calendar year preceding the
study, and the purposes for which such storage is
maintained; and
[(3) contain such findings and recommendations for
legislation and administrative action as the Secretary
considers appropriate, including recommendations for
improving the availability and quality of data
concerning such storage.]
* * * * * * *
----------
ENERGY SECURITY ACT
* * * * * * *
TITLE V--SOLAR ENERGY AND ENERGY CONSERVATION
* * * * * * *
[Subtitle F--Energy Auditor Training and Certification
[Sec. 581. Purpose.
[Sec. 582. Definitions.
[Sec. 583. Grants.
[Sec. 584. Authorization of appropriations.]
TITLE V--SOLAR ENERGY AND ENERGY CONSERVATION
* * * * * * *
[Subtitle F--Energy Auditor Training and Certification
[Purpose
[Sec. 581. It is the purpose of this subtitle to encourage
the training and certification of individuals to conduct energy
audits for residential and commercial buildings in order to
serve the various private and public needs of the Nation for
energy audits.
[Definitions
[Sec. 582. For the purposes of this subtitle--
[(1) the term ``Governor'' means the chief executive
officer of each State, including the Mayor of the
District of Columbia;
[(2) the term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa,
and the Northern Mariana Islands;
[(3) the term ``energy audit'' means an inspection as
described in section 215 (b)(1)(A) of the National
Energy Conservation Policy Act, or an energy audit as
defined in section 710(b)(7) of such Act, which in
addition may provide information on the utilization of
renewable resources and may make energy-related
improvements in the building; and
[(4) the term ``Secretary'' means the Secretary of
Energy.
[Grants
[Sec. 583. (a) The Secretary may make grants to any Governor
of a State for the training and certification of individuals to
conduct energy audits.
[(b) Before making a grant under subsection (a) to a
Governor, the Secretary must receive from the Governor an
application containing--
[(A) any information which the Secretary deems is
necessary to carry out this subtitle; and
[(B) an assurance that the grant will supplement and
not supplant other funds available for such training
and certification and will be used to increase the
total amount of funds available for such training and
certification.
[(c)(1) Before making any grant under subsection (a) the
Secretary shall establish minimum standards for the training
and certification of individuals to conduct energy audits.
[(2) The Secretary shall require each Governor receiving any
grant under this subtitle to agree to meet the standards
established pursuant to paragraph (1) in any training and
certification conducted using funds provided under this
subtitle.
[Authorization of Appropriations
[Sec. 584. (a) To carry out this subtitle there is authorized
to be appropriated the sum of $10,000,000 for the fiscal year
ending on September 30, 1981, and the sum of $15,000,000 for
the fiscal year ending on September 30, 1982.
[(b) Any funds appropriated under the authorization contained
in this section shall remain available until expended.
* * * * * * *
DISSENTING VIEWS
We agree that America's energy picture is changing rapidly
and that we need to update and modernize our energy
infrastructure. The Obama Administration's common-sense energy
policies have already started us on that road: our country is
experiencing record energy surpluses, significant reductions in
demand, and prices at the pump that have fallen nearly 50
percent from where they were a year ago.
Unfortunately, H.R. 8 fails to build on these successes.
The bill does not include any meaningful language to advance
clean and renewable energy and the energy efficiency title
would actually result in a net increase in consumption and
carbon emissions. The bill is opposed by environmental groups,
efficiency and consumer advocates, and the clean energy sector.
The Majority cited a number of legislative hearings as part
of the record behind the development of this legislation, but
all of those hearings were held to examine draft legislative
text that changed so significantly prior to markup as to be
nearly irrelevant. Much of the language that now comprises H.R.
8 was available only hours before being voted on in the
Committee. As a result of the Majority's rushed approach,
Members did not have the benefit of hearings, the
Administration's views, or any other means of understanding
whether the legislation would benefit or harm consumers, the
economy, energy security or the environment.
NATURAL GAS PIPELINE SITING: FIXING PHANTOM PROBLEMS, PUSHING ASIDE
PUBLIC SCRUTINY
Sec. 1101, entitled ``FERC Process Coordination'' makes
dangerous and unnecessary changes to the FERC natural gas
pipeline siting process, which the Majority declares is
necessary to ``reinforce the Federal Energy Regulatory
Commission's (FERC) role as the lead agency for siting
interstate natural gas pipelines.''\1\ Nothing in the
legislative record over the course of recent Congresses
suggests that FERC's role is in doubt or hindered. Even recent
industry publications provide strong evidence against the
Majority's assertion that the certification process needs to be
further reformed in favor of pipeline companies:
\1\Memorandum from Majority Staff to Members of the Subcommittee on
Energy and Power, Subcommittee Markup of a Committee Print (July 20,
2015).
---------------------------------------------------------------------------
The first quarter of 2015 proved busier than the
first quarter of 2014 for the Federal Energy Regulatory
Commission's Office of Energy Projects. Through April
30 of this year, the office certified and placed in
service almost twice as many natural gas projects and
more than doubled the miles of pipeline that were put
in service and certified through the same date in
2014.\2\
---------------------------------------------------------------------------
\2\American Gas, Pipelines DIGEST at 6 (Oct. 2015).
In point of fact, the siting of natural gas pipelines is
often controversial and requires detailed regulatory scrutiny
by FERC, yet Section 1101 would require FERC to decide on a
pipeline application within 90 days, regardless of the
complexity of the application. Because FERC has previously
testified that most pipelines are already certificated within a
one year period, the purpose of this section appears to have
more to do with curtailing federal and state resource agencies
and the public's ability to review and comment on a proposed
pipeline than on actually speeding the delivery of energy to
end users. This view is further supported by a major change in
this section that would require the agency to consider
environmental data from aerial or remote surveys, instead of
onsite inspections. This policy change, added at the last
minute without any public vetting, allows companies working to
build natural gas pipelines the ability to circumvent property
owners' rights when surveying land. In a number of cases,
companies do not have the requisite permits to survey the land
they are seeking to access and the language appears designed to
allow them to sidestep that aspect of the application process.
Rep. Tonko offered an amendment to strike this section to
ensure federal and state regulators are given the time needed
to carefully and thoughtfully review applications for the
construction of natural gas pipelines and to ensure that the
landowners and the general public at least have some ability to
participate meaningfully in the siting process.
ELECTRICITY REGULATION: A WIN FOR INEFFICIENT UTILITIES, A LOSS FOR
CONSUMERS AND CLIMATE
The provisions of H.R. 8 relating to the regulation of
electric energy under Federal law represent a backward-looking,
and anti-consumer approach that rewards inefficiency and
penalizes innovation. Two of the provisions--Sections 1107 and
1110--mark a dramatic reversal of the pro-market and pro-
consumer policies of the Energy Policy Acts of 1992 and 2005,
while a third provision, Section 1108, would add unjustified
regulatory and litigation burdens to the rulemaking process.
All three of these provisions are being included by the
Majority under the guise of enhancing the reliability of the
grid. However, not a shred of hard evidence was provided to
demonstrate that any of these sections would result in greater
reliability or even that any portion of the nation's electrical
system is in danger of becoming unreliable.
Sections 1107 and 1110 are two sides of the same harmful
policy, one targeted at regulated states and the other at
states participating in regional wholesale markets. Section
1107 amends Section 111 of the Public Utility Regulatory
Policies Act (PURPA) to establish a new federal standard
requiring electric utilities to consider adoption or
modification of policies to assure reliable generation in
utilities' integrated resources plans. However, what the
provision actually looks to do is stack the generation deck in
favor of above market coal and nuclear power. Language added by
Democrats during the Energy and Power Subcommittee's
consideration of the bill also require consideration of
approaches that would improve resilience to severe weather
events resulting from catastrophic climate change. However, on
balance, the language in Section 1107 would result in
unnecessary additional spending by states to consider adoption
of policies that would benefit owners of non-economic
generation to the detriment of ratepayers.
An amendment by Rep. Pompeo narrowly adopted during markup
would require states to expend additional resources to consider
the impacts of subsidizing the deployment, construction,
maintenance, or operation of a customer-side technology;
including costs and benefits, resource utilization, fuel
diversity, and grid security. This provision appears to be
squarely aimed at hindering the growing integration into the
grid of distributed generation and other ``customer-side''
technology.
As bad as Section 1107 is, still worse is Section 1110,
which would amend the Federal Power Act to require each
regional transmission organization (RTO) and independent system
operator (ISO) that operates a capacity market to provide to
FERC an analysis of how: (1) such market utilizes competitive
market forces in procuring capacity resources; and (2) the
structure of such market includes resource-neutral performance
criteria that ensure the procurement of sufficient capacity
from physical generation facilities that have certain
reliability attributes, such as fuel on-site, dual fuel
capability, and contractual obligations that ensure adequate
fuel supply to enable operation for an extended period of time.
After such an analysis is submitted, FERC is required to submit
to Congress a report containing an evaluation of whether the
structure of such market, as detailed in the analysis, meets
the required criteria and, if it does not, provide
recommendations with respect to the procurement of sufficient
capacity meeting the identified reliability attributes.
At its core, Section 1110 is designed to interfere with the
competitive wholesale process established in EPAct 2005 in
order to prop up generating facilities that would otherwise be
rejected as economically noncompetitive by the market. The
situation giving rise to this effort was described well by
Chuck Jones, President and CEO of FirstEnergy on a recent
earnings call:
We are talking about trying to find ways to preserve
major generating assets that have plenty of useful life
left in them, and keep them from closing prematurely.
Exelon is looking at doing that in Illinois and New
York. Ohio utilities are looking at doing that in Ohio
. . . These plants are at risk today, and we need to
get a decision made, as to whether we're going to look
at ways to protect them, so we let all of those debates
and legislation in Washington, DC and everything else
play out.\3\
---------------------------------------------------------------------------
\3\FirstEnergy (FE) Earnings Report: Q2 2015 Conference Call
Transcript at 9, The Street (Aug. 3, 2015) (online at
www.thestreet.com/story/13240841/9/firstenergy-fe-earnings-report-q2-
2015-conference-call-transcript.html).
The provision is both anti-consumer and anti-environment as
it seeks to aid noneconomic nuclear and coal facilities at the
expense of less costly, cleaner and equally reliable generation
sources such as wind and solar power. And, the provision is as
unnecessary as it is harmful, since FERC already has authority
to address these matters and is doing so--a fact readily
acknowledged by the Chairmen in their July 8, 2015 letter with
Senator Murkowski to FERC Chairman Bay on this subject.
Although described by the majority as merely requiring a
report, it is critical to understand that the language clearly
requires ongoing reporting by RTOs and FERC and, with each
report, another opportunity for owners of noneconomic
generation to litigate their rejection from the market on the
basis of inadequate adherence to the skewed language of this
provision. If there is any doubt as to whether the Majority
intends Section 1110 to be more than just a study, one need
only look to subsection 1110(c). That subsection specifically
exempts a discrete set of enumerated dockets from the
provision's application. It further goes on to state that the
section shall not ``provide grounds for the Commission to grant
rehearing or otherwise modify orders issued in those dockets.''
Yet, by specifically exempting those enumerated dockets from
rehearing or modification, the provision clearly invites the
Commission to grant rehearing and modifications with regard to
any other relevant docket, now or in the future. It is hard to
imagine a more open invitation to litigation on behalf of those
who own coal and nuclear plants that were previously unable to
compete in the marketplace.
Ultimately, there appears to be a fairly broad skepticism
of capacity markets on both sides of the aisle. Rep. Kennedy,
in his opening statement referred to ``a broken, backwards
forward-capacity market system'' and called for oversight and
``reform of the system that sets rates for our constituents so
they are not left paying for shortcomings.'' So, what is
perhaps most tragic about the inclusion of Section 1110 is that
the Majority has wasted an opportunity to unite both sides of
the aisle in an effort to better understand and comprehensively
address problems in the market affecting all suppliers and all
consumers. Instead of working with Democrats to assess and
repair problems with capacity markets, the Majority chose
instead to include a provision that helps only a select few
providers at the expense of consumers, the environment, and the
market itself. Rep. Kennedy offered an amendment to improve the
AINS by striking Section 1110 that was opposed by the Majority.
The subsequent rejection by the Majority of Rep. Tonko's
amendment to exempt an RTO that prepared a comprehensive
reliability plan from the requirements of Section 1110 casts
serious doubt on the claim that Section 1110 is designed to
address reliability.
The third provision the Majority included in the name of
reliability, Section 1108, would impose an unprecedented
requirement for FERC to complete a ``reliability analysis'' of
covered rules that cost over a billion dollars. Ranking Member
Pallone offered an amendment to strike this provision, which
would not only be extremely burdensome, but also is completely
unnecessary in light of the reliability requirements and
authorities contained in Section 215 of the Federal Power Act
added by Congress in EPAct2005.
Clearly, Section 1108 appears directed less at bolstering
reliability and more toward undercutting environmental
regulation, specifically the Clean Power Plan and the actions
of the Obama Administration to address the threat of climate
change.
Even on these terms this provision is completely
unnecessary as FERC certainly has the ability to comment on EPA
rules if it so chooses. In fact, FERC already coordinates
routinely with other federal agencies whose proposed or final
rules affect the electric power sector. It is unclear whether
FERC would have either the resources or the ability to conduct
an analysis within the short timeframes in this section.
Moreover, state plans are the actual vehicles for
implementation of the Clean Power Plan, so requiring FERC to
analyze the final rule would be completely without purpose.
Furthermore, the final rule already requires each state to
consider reliability concerns when developing a compliance
plan, and EPA and FERC are coordinating their efforts to
``preserve continued reliable electricity generation and
transmission.'' Even if FERC were somehow able to put together
the reliability in this section, the rule contains extended
multi-year compliance timeframes that would limit the
usefulness and accuracy of such predictions.
Ultimately, Section 1108 raises the specter of reliability
failure where none exists. As EPA recently said: ``Over the
past 45 years, EPA has never issued a rule that has threatened
the delivery of affordable and reliable electricity to American
families, and the Clean Power Plan will not change that.'' In
fact, the final Clean Power Plan provides states with a
valuable tool to guarantee the reliability of the electric
grid, and will help to ensure a smooth transition to cleaner
energy future. Unfortunately, rather than address climate
change and its challenges to reliability, the Majority has
again chosen to instead erect legislative roadblocks to prevent
Congress from doing anything about it.
Another un-vetted and unjustified addition to the
Majority's bill appears in Section 4222, entitled
``Clarification of Facility Merger Authorization.'' In point of
fact, the section does not clarify anything, but rather raises
the financial threshold for FERC to consider acquisitions of
electric transmission facilities. No justification for this
provision was provided at any of the legislative hearings cited
by the Majority in this report and, in truth, no mention of any
aspect of this provisions appeared in those hearings. Further,
the Majority's statement that ``[t]his amendment would require
FERC to restore a previous and long-standing, minimum monetary
threshold applied to public utilities' acquisitions and
dispositions of FERC-jurisdictional electric transmission
facilities, would correct an apparent oversight that resulted
in Congress's intent in EPAct 2005 not being completely enacted
by the Commission'' is factually inaccurate.
The committee-reported version of EPAct 2005, as authored
by former Chairman Barton, did not contain a monetary threshold
for this provision and no mention of such a threshold appears
in the H. Report 109-215 or the Conference Report accompanying
EPAct 2005. So, while establishing a statutory monetary
threshold in Section 203 of the Federal Power Act may or may
not be sound policy, nothing in the record supports the view
that Congress intended to include a monetary threshold for FERC
merger reviews in Section 203 either before or as a result of
the enactment of EPAct 2005.
On a final note with regard to the electricity provisions
is that they sorely reflect the fact that, at the time of
writing these views, the Majority has yet to hold or even
schedule a hearing with the FERC Commissioners. And, this
situation has been allowed to continue, despite the appointment
of a new Chairman and a new Commissioner since the beginning of
this Congress and the inclusion of many provisions that impact
areas overseen by FERC. The same is true with regard to bill's
natural gas and hydroelectric provisions. Taken as a whole this
amounts to nothing less than legislative malpractice of the
highest order.
ENERGY EFFICIENCY PROVISIONS: MORE CONSUMPTION THAN CONSERVATION
In previous omnibus energy legislation, energy efficiency
was generally an area of bipartisan accord. Unfortunately, that
is no longer the case as the Majority has opposed the inclusion
of any meaningful language in this bill to increase the
conservation of our nation's energy resources and manage
demand.
H.R. 8 actually goes the opposite direction and, according
to American Council for an Energy-Efficient Economy (ACEEE),
the ``Energy Efficiency'' title would actually result in a net
increase in consumption and greenhouse gas emissions relative
to current law. In fact, ACEEE roughly estimates that
collectively the title would result in a staggering $20 billion
in net cost to consumers, an additional 10 quads of energy use,
and additional emissions of around 500 million metric tons of
CO2.\4\
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\4\American Council for and Energy Efficient Economy, 2015 Federal
Energy Efficiency Legislation and Projected Impacts (Sept. 8, 2015)
(online at aceee.org/sites/default/files/ee-legislation-9-15-15.pdf).
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The most damaging of these provisions from an energy
efficiency standpoint are the changes to the Department of
Energy's authorities with regard to building codes contained in
section 4151. Of particular concern is the language preventing
DOE from providing any assistance--whether technical or
financial--if it finds that a proposed code does not meet a
simple payback period of ten years or less. This sets a
dangerous federal precedent of determining what is and is not
an acceptable return on investment and does not fit with the
reality of mortgage durations and home ownership. Dictating a
single, federally-determined simple payback model does not
account for the widely varying market and climate circumstances
across our vast country.
Building codes are the most-effective tool to ensure that
efficiency is implemented when it is cheapest and easiest: when
a building is first constructed. Building codes are
particularly important because they protect homeowners by
lowering the overall cost of home ownership. Unlike upgrades
such as granite counter tops, efficiency is hard to see at the
time of purchase and so a builder looking to cut costs may
skimp on this important measure to reduce their first costs.
This is short sighted and ultimately will result in greater
cost to the home owner who sees the combined cost of their
mortgage and utility bills each month. Skimping on efficiency
probably doesn't do much to lower a mortgage payment, but it
certainly will result in a higher utility bill, increasing
overall monthly costs and reducing affordability.
The language included in the bill as reported takes a
short-sighted view of affordability, by requiring DOE to
analyze simple payback of measures over three, five and seven
year periods and not allowing them to propose any measure that
has a longer payback than ten years. Given that a mortgage will
run from 15-30 years and a home will be around for many
decades, limiting DOE to such short payback periods does not
make sense.
ACEEE recently estimated that enactment of the building
codes language included in H.R. 8 would result in a net loss in
efficiency of 12.53 quads at a cost of $23 billion to
consumers. That is one of many reasons why Ranking Member
Pallone offered an amendment to strike the building code
provisions from the AINS.
It is also important to note that the Committee had another
option beyond just either maintaining current law or adopting
the language included in the AINS. In negotiations with the
Majority Democrats declared their willingness to support
bipartisan compromise language authored by Rep. McKinley (R-WV)
and Rep. Welch (D-VT) and introduced in this Congress as part
of H.R. 2177. Unfortunately, the Majority chose neither current
law nor compromise.
Of course, merely eviscerating DOE's authority with regard
to building code efficiency was not enough for the Majority.
The Majority has continuously shown itself unable to resist any
opportunity to attack any program or provision of law that
would reduce greenhouse gas emissions and their impact on
climate change and H.R. 8 is no exception.
H.R. 8 repeals a key portion of section 433 of the Energy
Independence and Security Act, signed into law by President
George W. Bush, which established energy efficiency performance
standards for the design of new federal buildings and those
federal buildings undergoing major renovations. The provision
strikes language in current law that requires federal buildings
to be designed to result in decreased consumption of fossil
fuels, including a 100 percent reduction by 2030 compared to a
similar building in 2003.
Sec. 433 established groundbreaking energy efficiency
performance standards for the design of new Federal buildings
and those Federal buildings undergoing major renovations. But
H.R. 8, as reported, strikes the requirement that new federal
buildings to be designed to result in decreased consumption of
fossil fuels, a move that ACEEE estimates will deprive
consumers of $700 million in savings over the next 25 years.
According to the American Institute of Architects, not only
are Section 433's current targets achievable, but some
buildings are already meeting the 2030 target of a 100 percent
reduction in fossil fuel use now. This includes, the Wayne N.
Aspinall federal building in Colorado--the first net zero
energy building on the National Register of Historic Places.
Maintaining Section 433 and the progress toward its goals
is critical because the federal government is the largest
property owner and energy consumer in the United States.
Requiring federal buildings to meet aggressive energy targets
not only reduces taxpayer costs through energy savings and
reduces our dependence on foreign oil; it also leverages the
government's large purchasing power to bring new technologies
and materials to the marketplace.
Some in the Majority have gone so far as to characterize
Section 433 as ``a ban on the federal government using energy
from fossil fuel,'' but the law does not ban fossil fuels. In
fact, at no point does this provision in current law require
zero fossil fuel use for any building designed or renovated
before 2030. And, despite testimony by the American Gas
Association that ``the Section 433 fossil fuel ban is deeply
flawed.'' Its implementation will severely limit--and
ultimately prohibit--adoption of highly efficient technologies
using natural gas at federal facilities, such as combined heat
and power . . . DOE has actually proposed carve-outs for on-
site natural gas usage in highly efficient combined heat and
power systems.
HYDROELECTRIC PROVISIONS: WATERING DOWN PROTECTIONS AND RIGHTS
Maintaining and expanding our nation's hydroelectric
capacity to generate electricity without carbon emissions is
crucial to our ability to combat climate change and increase
economic prosperity.
Ironically, climate change has increased the need to
license new capacity of this carbon-free generating technology
at the same time it has caused record drought that has made it
more difficult to site new capacity or provide long-term
relicensing of existing facilities. Climate-induced changes in
hydrology--including the record drought in the west--is calling
into question the reliability of existing facilities, upending
the economics of siting new hydropower capacity, and increasing
the challenges associated with addressing hydropower's
environmental issues. Hydroelectric power potentially poses a
major source of harm to fish and wildlife populations, water
quality, and other important resources if poorly operated or
sited. This is a crucial point, because hydroelectric power
depends on rivers for fuel and those rivers belong to all
Americans, not just those who sell or buy the power generated
from it. There are also numerous examples of hydroelectric dams
devastating lands and waters sacred to Native American tribes.
Accordingly, the Federal Power Act requires FERC to balance
these competing interests in issuing a license because no
single use of a river--power, drinking water, irrigation,
commercial fishery support, recreation, or other use--should
automatically take precedence.
Unfortunately, H.R. 8, as reported, would upend that
balance, placing power generation above all other uses of the
river.
The Federal Power Act authorizes States and federal natural
resource agencies to place conditions on hydroelectric licenses
to preserve water quality, protect public lands and Native
American reservations, and ensure proper fish passage to
preserve healthy ecosystems and fisheries. If, for instance,
the license might impact a protected resource, such as
dewatering a Wild and Scenic River or National Wildlife Refuge,
releasing toxic sediment, flooding a Native American
reservation, or extirpating a keystone species, the State or
federal agency responsible for managing that resource can place
conditions on the license to ensure the resource is protected.
Hydroelectric licenses have fixed conditions that generally
remain unchanged during the 30 to 50 years they are in force.
Licensees also benefit from unlimited, automatic, annual
extensions after their license has expired if a new license has
not been issued. As a result, the impacts of these hydropower
dams often go unaddressed for more than half a century.
Particularly for those facilities first licensed before
enactment of the Electricity Consumers Protection Act (1986)
and major environmental statutes such as National Environmental
Policy Act (1970), the Clean Water Act (1972), and the
Endangered Species Act (1973), the process of developing new
license conditions necessarily will require upgrades to
facilities to bring them in line with modern environmental laws
and attendant regulations. Rightfully, this makes the licensing
process rigorous. Sometimes, the necessity of addressing these
complex issues also makes the process time-consuming,
frustrating, and expensive.
In order to address some of the frustration with the
relicensing process, EPAct05 saw the enactment of the most
significant changes to federal hydroelectric licensing law
since enactment of the Electric Power Consumers Act. EPAct05
included new provisions that permit licensees to propose less
costly alternatives to agency-imposed conditions and gives
parties access to trial-type hearings to resolve disputed
factual issues underpinning those conditions. Both of these
changes represented bipartisan efforts to reduce the cost and
timing associated with relicensing. In addition, FERC worked
with state and federal agencies, industry, and non-governmental
organizations to develop the Integrated Licensing Process
(ILP), which was intended to address similar issues of cost and
timing. Despite the fact that both the ILP and the EPAct05
rules have been in place for more than a decade, the Committee
has never conducted meaningful oversight on the effectiveness
of either change.
We repeatedly expressed our interest in working with the
Majority to enact commonsense, environmentally sound reforms to
speed the hydroelectric licensing process and make investments
in new projects economically attractive while balancing the
needs of all stakeholders. However, instead of working with
Democrats to accomplish these important goals, the Majority
chose to repeat the mistakes of the past, paying exclusive
attention to the interests of hydroelectric developers and
licensees. In the name of ``reform'' the provisions included in
H.R. 8 give preferential treatment to electric utilities at the
expense of other legitimate parties to licensing proceedings
including states, Indian tribes, conservationists, irrigators,
ranchers, and sportsmen.
The hydroelectric provisions included in Subtitle C of
Title I, in many ways, represent all the worst shortcomings of
the Majority's approach to legislating. While Sections 1301-
1303 were provided only 24 hours in advance of the markup, the
21-page amendment offered by Ms. McMorris-Rodgers which formed
the basis for bulk of Subtitle C, wasn't made public until
after the markup formally commenced. Within those 21 pages are
significant changes to provisions of hydroelectric statute and
case law that have developed and endured over the course of
nearly a century and effectively constitute an unprecedented
undermining of federal, state and tribal authorities and many
of our nation's critical environmental laws. Yet, despite the
massive scope and impact of these provisions on existing law
and policy, not one of these changes had been subject to a
hearing or review by the Committee prior to inclusion in H.R.
8. As such, Members were left with a matter of minutes to
attempt to discern the impact of these changes on literally
decades of policy touching on everything from state authority
under the Clean Water Act to Native American tribal rights to
fish, wildlife and water resource management, to the Endangered
Species Act and the National Environmental Policy Act.
RENEWABLE ENERGY: CHARTING A PATH BACKWARD
H.R. 8 has one central theme binding its titles: a
steadfast devotion to the energy of days gone by. It is
legislation that looks to the rearview mirror for its vision of
the future.
If there is any doubt that this is the case, one need only
look to the provisions of the bill designed to facilitate the
integration of clean and renewable generation technologies into
the grid. There are none.
In fact, Republicans opposed nearly every effort to include
any provision that would have advanced the adoption of clean
and renewable energy generation including:
An amendment by Rep. Loebsack to establish a
program to promote the development of distributed wind
energy systems;
An amendment by Rep. Cardenas establishing a
new loan and grant program to make solar power more
accessible to low income households;
An amendment by Rep. Castor to promote
distributed energy and a resilient electrical system.
Section By Section Analysis of Provisions Added During Full Committee
Consideration
Section 1101: FERC process coordination
This section is intended to reform the siting review
process for natural gas pipelines at the Federal Energy
Regulatory Commission (FERC). The previous version of this
section directed FERC to select which agencies are to
participate in the review process, and establish deadlines for
them in completing their consideration of pipeline
applications.
Changes made by the Committee include:
Directing FERC to notify, rather than
formally invite, any agency that may consider an aspect
of a natural gas pipeline application;
Directing FERC to make recommendations on
the appropriate scope of environmental review;
Removing the provision related to issue
resolution meetings; and
Removing the provision allowing applicants
to provide additional funding to aid FERC in the review
of permit applications.
This section also included troubling language that would
require other federal and state agencies to defer to the scope
of environmental review determined by FERC to be appropriate
for the project. Representatives of the environmental community
note that the inclusion of this deference language ``is an
inappropriate restraint on the important work that other
agencies perform to ensure that pipelines are sited
responsibly.''\5\
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\5\Letter from Center for Biological Diversity, Clean Water Action,
Earthjustice, Friends of the Earth , GreenLatinos, League of
Conservation Voters, Natural Resources Defense Council, Public Citizen
Sierra Club, and the Southern Environmental Law Center to Members of
the Committee on Energy and Commerce (July 21, 2015).
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Finally, the Amendment in the Nature of a Substitute
(AINS), included the addition of language related to aerial or
remote surveys. The language would require FERC to consider
environmental data from aerial or remote surveys, instead of
onsite inspections. This policy change allows companies working
to build natural gas pipelines the ability to circumvent
property owners' rights when surveying land.
Rep. Tonko offered an amendment to strike this section
during the full Committee markup. The Amendment failed by a
vote of 20 yeas to 29 nays.
Section 1107: State coverage and consideration of PURPA standards for
electric utilities
Section 1107 amends section 111 of the Public Utility
Regulatory Policies Act (PURPA), which generally directs states
to consider and make a determination whether or not to adopt
certain federal standards.
Section 1107 establishes a new federal standard requiring
each electric utility to develop plans for increased use of
resiliency-related technologies and other approaches that would
improve resilience and maintain the flow of power to facilities
critical to public health, safety, and welfare. These plans
should use ``the most current data, metric, and frameworks
related to current and future threats, including physical and
cyber-attacks, electromagnetic pulse attacks, geomagnetic
disturbances, seismic events, and severe weather and other
environmental stressors.'' Also, ``all types of distributed''
generation has been added to the list of resiliency-related
technologies. Each electric utility would be required to
commence such consideration within one year of enactment and to
complete the consideration within two years. Additionally,
state regulatory authorities are directed to consider allowing
rate recovery for procurement and deployment of resiliency
related technologies.
Section 1107 also establishes a second federal standard
requiring each electric utility to develop and implement a plan
for deployment of advanced energy analytics technology. State
regulatory authorities are directed to consider allowing rate
recovery for the procurement, deployment, or the use of
advanced energy analytics technology. Electric utilities shall
commence such consideration within six months of enactment and
complete the consideration within one year.
Under a third federal standard included in section 1107,
electric utilities are directed to consider adoption or
modification of policies to assure reliable generation in
integrated resources plans of utilities. Operational
characteristics of ``reliable generation'' include:
``possession of adequate fuel onsite, the operational ability
to generate electric energy from more than one fuel source or
fuel certainty that ensures adequate fuel supply.'' Electric
utilities shall commence consideration within one year of
enactment and complete consideration within two years.
Section 1108: Reliability analysis for certain rules that affect
electric generating facilities
Section 1108 would impose a requirement for FERC to
complete a ``reliability analysis'' of covered rules that cost
over a billion dollars, and could impact just one electric
generating unit. This section appears to be aimed at the Clean
Power Plan, and actions of the Administration to address the
threat of climate change.
FERC already has the ability to comment on EPA rules if it
so chooses, so at a minimum, this provision is unnecessary. In
fact, FERC already coordinates routinely with other federal
agencies whose proposed or final rules affect the electric
power sector. It is unclear whether FERC would have either the
resources or the ability to conduct an analysis within the
short timeframes in this section.
State plans are the actual vehicles for implementation of
the Clean Power Plan, so requiring FERC to analyze the final
rule would not serve any purpose. In fact, it would be very
difficult for FERC to develop an accurate reliability analysis
prior to the submission of the state plans.
EPA's final rule already requires each state to consider
reliability concerns when developing a compliance plan, and EPA
is coordinating its efforts with FERC to ``preserve continued
reliable electricity generation and transmission.''\6\
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\6\U.S. Environmental Protection Agency, The Clean Power Plan: Key
Topics and Issues (Aug. 3, 2015) (online at www3.epa.gov/airquality/
cpp/cpp-key-topics.pdf).
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Ranking Member Pallone offered an amendment to strike this
section during the full Committee markup. The amendment failed
by a vote of 22 yeas to 27 nays.
Section 1109: Carbon capture, utilization, and sequestration
technologies
Section 1109 was added by the AINS and had not been
considered by the Committee prior to the markup. The provision
was based on legislative language submitted for consideration
by Reps. Doyle and McKinley. Section 1109 directs the
Department of Energy (DOE) to perform an evaluation every two
years on all clean coal technology awards to ensure the funds
being allocated for clean coal projects are meeting the goals
set forth in the grant.
This provision further encourages DOE to recognize the most
promising clean coal projects and research as well as those
technologies that have reached their full potential. It also
encourages DOE to recommend new funding levels for projects and
areas of research to ensure funds are being granted to projects
that are truly advancing clean coal technology.
DOE is to make the evaluation findings public, publish them
on the website, and present the findings and funding
recommendations to Congress every three years. Finally, DOE is
directed to annually identify and report cost and performance
goals for coal-based technologies that would allow for large
scale demonstration and permit the continued cost-competitive
use of coal for commercial use.
Section 1110: Reliability and performance assurance in regional
transmission organizations
Section 1110 would effectively limit market forces from
awarding the most efficient technologies and create an uneven
system that only benefits certain power generators. While the
language in Section 1110 purports to be ``resource neutral,''
the set of requirements for participation in capacity markets
has the potential to disqualify both distributed energy and
renewable energy resources.
Many states are already including aggregated resources into
capacity markets. This expands market participation and
increases competition which benefits both businesses and
consumers. If enacted, Section 1110 would undo these benefits
by preventing cost savings that could be created through
distributed energy resources, including efficiency and load
shifting resources. States and regional entities already take
reliability into account through existing mechanisms. Federal
intervention in these determinations is both unnecessary and
problematic.
Rep. Kennedy offered an amendment to strike this section
during the full Committee markup. The amendment failed by a
vote of 22 yeas to 26 nays.
Section 1201: Energy security and infrastructure modernization fund
Section 1201 established an Energy Security and
Infrastructure Modernization Fund in the Treasury of the United
States. This fund is intended (1) to provide for the
construction, maintenance, repair, and replacement of Strategic
Petroleum Reserve (SPR) facilities; and (2) for carrying out
non-SPR projects needed to enhance the energy security of the
United States.
This section is not problematic in principle. However, the
amounts authorized in this section are less than those agreed
to by the Chairman in order to secure Democratic support at the
subcommittee markup.
During the full Committee markup, a number of members
offered amendments to restore the funding levels to what was
originally agreed upon. Rep. Rush offered an amendment to
include $1.5 billion for a program to help offset the costs of
replacing and repairing leaky natural gas distribution
pipelines for low income households. The amendment failed by a
vote of 23 yeas to 25 nays. Ranking Member Pallone also offered
an amendment to increase funding for the SPR modernization to
$2 billion, and the competitive grant program for grid
resiliency efforts to $1.5 billion. The amendment failed by a
vote of 23 yeas to 25 nays.
Section 1301: Hydroelectric production and efficiency incentives
Section 1301 would amend the the Energy Policy Act of 2005
(EPAct05) to reauthorize through fiscal year 2025 the program
of hydroelectric production incentives and incentive payments
to the owners or operators of hydroelectric facilities at
existing dams to make capital improvements directly related to
improving efficiency.
Section 1302: Protection of private property rights in hydropower
licensing
Section 1302 amends Sections 4 and 10 of the Federal Power
Act to require FERC to consider and minimize infringement on
``the useful exercise and enjoyment of property rights held by
nonlicensees'' in issuing hydropower licenses. Further, it
requires a licensee developing any recreational resource within
the project boundary to consider private landownership as a
means to ``encourage and facilitate'' private investment as
well as increased tourism and recreational use.
Section 1303: Extension of time for FERC project involving W. Kerr
Scott Dam
Sec. 1303 would authorize FERC to extend the construction
date of the W. Kerr Scott Dam in North Carolina for six years.
Section 1304: Hydropower licensing and process improvements
Section 1304 would add a new Section 34 to the Federal
Power Act entitled Hydropower Licensing and Process
Improvements and contains elements similar to the pipeline
siting process changes in Section 1101. The section changes
existing law to empower FERC to set the schedule for all
federal authorizations, including those issued pursuant to the
Endangered Species Act, The Federal Land Policy and Management
Act and the Wild and Scenic Rivers Act, among others. FERC's
new authority would also apply to federal authorizations that
have been delegated to Native American tribes and the states,
including water quality certification under Section 401 of the
Clean Water Act. All federal and state agencies and tribes are
required to comply with FERC's schedule and give due
consideration or deference to FERC's proposed scope of
environmental review, setting up a new potential avenue for
litigation and reversing standards in current law requiring
FERC to give ``due weight'' to the recommendations, expertise,
and statutory responsibilities'' of those agencies. FERC is
also required to promulgate regulations governing the
procedures for developing the schedule for Federal
authorizations in each individual proceeding. Federal, state
and local agencies, as well as tribes, are directed to identify
and bring to FERC's attention issues of concern that may delay
or prevent the grant of an authorization or adherence to FERC's
schedule. The provision places FERC in charge of the process
for resolving disputes involving such agencies or tribes and
requires those entities to enter into a memorandum of
understanding with FERC to facilitate dispute resolution. The
section also authorizes license applicants to directly fund
third party contractors to assist agencies and tribes in their
review of license applications. The new section also allows an
agency or tribe that is unable to comply with FERC's schedule
to file a request for extension through a court-based process
set out in Section 1305 and requires FERC, together with
agencies and tribes, to compile a consolidated record of
decisions to serve as the basis for the court's review of a
request.
Section 1305: Judicial review of delayed federal authorizations
Section 1305 would add a new paragraph (2) to Section
313(b) of the Federal Power Act requiring federal, state, or
local government agencies or a tribe that is unable to meet a
FERC schedule deadline to file a request for extension in the
US courts of appeal not later than 30 days before such
deadline. The court is only permitted to grant an extension if,
based on the consolidated record, the agency or tribe
demonstrates that it otherwise complied with the requirements
of new Section 34 and that complying with FERC's schedule would
have prevented the agency or tribe from complying with
applicable federal or state law. Any extension is limited to 90
days or less. If the court denies the extension or the agency
or tribe fails to meet a deadline, the agency or tribe loses
its ability to condition the license, effectively waiving
application of the Endangered Species Act, the Clean Water Act
and other key environmental statutes. It should be noted that
the provision does not require FERC to provide agencies and
tribes with the information necessary to make decisions within
the timeframe set by FERC.
Section 1306: Licensing study improvements
Section 1306 creates a new section 35 to the Federal Power
Act directing FERC to compile best practices for studies used
in licensing as well as a collection of studies that could
inform license proceedings. It further encourages stakeholders
to use ``a limited number of open-source methodologies and
tools applicable across a wide array of projects'' to optimize
the licensing process. Additionally, the section requires FERC,
tribes, other federal agencies, states, and local governments
to use ``current, accepted science in support of their
actions'' and that parties requesting studies or information
demonstrate that such study is ``not duplicative of current,
existing studies that are applicable to the project.'' The
section also requires FERC to create a program to develop
regional or basin-scale comprehensive plans and studies in
support of multiple projects, but only may use such tools at
the request of a license applicant, and only with regard to
projects in which the license applicants choose to participate.
Section 1307: Closed-loop pumped storage projects
Section 1307 would add a new section 36 to the Federal
Power Act to create a new, less stringent and more limited
licensing regime for closed-loop pumped storage defined as
projects ``in which the upper and lower reservoirs do not
impound or directly withdraw water from navigable waters'' or
``not continuously connected to a naturally flowing water
feature.'' Specifically, this section removes the Commission's
licensing and conditioning authority, comprehensive planning
and equal consideration responsibilities, as well as
requirements for working with federal and state agencies to
protect fish and wildlife under sections 4(e), 10(a), 10(g),
and 10(j) of the underlying Act. This section limits license
conditions to those necessary to protect public safety or, with
respect to addressing natural resource impacts, to those on
fish and wildlife resources directly caused by the construction
and operation of the project. It introduces a new precedent by
which conditions or requirements imposed pursuant to federal
authorizations such as the Endangered Species Act and the Clean
Water Act must be ``reasonable, economically feasible, and
essential'' setting up a novel and unknown legal test for
conditions and dramatically altering application of numerous
critical environmental laws. Finally, the section would allow
private companies to partner with municipalities in order to
claim the preference afforded municipal systems under current
law to gain application priority over other private companies,
regardless of whether or not the municipality would construct
or operate the project.
Section 1308: License amendment improvements
Section 1308 adds a new section 37 to the Federal Power Act
to create a new class of license amendments that are exempt
from the Federal Power Act's licensing requirements. It sets
timeframes for processing amendment applications FERC
determines are unlikely to harm the environment and would
either increase capacity, improve environmental protection, or
enhance public recreation. For a qualifying upgrade, this
section imposes limits on conditions similar to those described
for Section 1307, limiting conditions to those necessary to
protect public safety or, with respect to addressing natural
resource impacts, to those on fish and wildlife resources
directly caused by the construction and operation of the
project, including the requirement that such conditions be
``reasonable, economically feasible, and essential.'' Those
limits would not apply to an upgrade determined not to qualify
by FERC, however all mandatory deadlines and other provisions
of new Section 34--as added by Sections 1304 and 1305 of H.R.
8--would continue to apply.
Section 1309: Promoting hydropower development at existing nonpowered
dams
Section 1309 would add a new section 38 to the Federal
Power Act that authorizing FERC to exempt from licensing
requirements qualifying hydropower facilities added to existing
non-powered dams. Qualifying facilities must not be currently
licensed or exempt; they must not be associated with a non-
power dam that was constructed before the date of enactment and
operated for purposes other than power production, and they
must not currently have a FERC license or an exemption from
licensing. Additionally, the project must be constructed for
electricity generation; it must generate power using existing
releases, flows, or diversions from underlying water
infrastructure; and it must leave operation, storage and
control of the underlying infrastructure unchanged. Exemptions
are permanent: responsibility for ensuring dam safety would
fall to the states. As in new Sections 36 and 37, it limits
conditions to those necessary to protect public safety or, with
respect to addressing natural resource impacts, to those on
fish and wildlife resources directly caused by the construction
and operation of the project, including the requirement that
such conditions be ``reasonable, economically feasible, and
essential.'' This section prohibits FERC from preparing an
Environmental Impact Statement, limiting options to either an
Environmental Assessment or a Categorical Exclusion. The
section also limits FERC's jurisdiction over project works to
include only the powerhouse and primary transmission line,
leaving conduits, dams, impoundments, shoreline, lands, or
project works associated with the underlying facility exempt
from Federal environmental or safety oversight. The provision
also adds a requirement that owners or operators of exempted
facilities pay annual charges to the general treasury to fund
watershed enhancement projects within the same watershed.
Section 3002: Energy security valuation
Section 3002 directs the Secretary of Energy, in
consultation with the Secretary of State, to develop a report
on a new valuation of energy security, taking into account a
number of recommendations outlined in the Quadrennial Energy
Review.
This section encourages energy trading between countries to
promote energy security and economic development. This language
reflects the agreement reached by the G7 countries in Germany
this past May, but leaves out that agreement's critical focus
on combating climate change as a major threat to energy
security.\7\
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\7\German Federal Ministry for Economic Affairs and Energy, G7
Energy Ministerial in Hamburg COMMUNIQUE: G7 Hamburg Initiative for
Sustainable Energy Security (May 2015) (online at www.bmwi.de/BMWi/
Redaktion/PDF/E/energieministertreffen-hambug-kommunique-englische-
sprachversion,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf).
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The Natural Resources Defense Council (NRDC) opposes the
omission of climate change in the new valuation of energy
security. According to NRDC, ``[p]romoting energy security and
economic interests at the expense of environmental
considerations (which [Title III] barely addresses) is highly
problematic.''\8\
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\8\Natural Resources Defense Council, Oppose H.R. 8--North American
Energy Security and Infrastructure Act of 2015 (Sept. 2015).
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Section 3005: Strategic petroleum reserve mission readiness plan
Section 3005 requires the Secretary of Energy, within 180
days of enactment, to conduct a strategic review of the
strategic petroleum reserve (SPR), including identification of
near and long-term roles for the SPR. Among other things, the
Secretary is also required to develop and submit a plan to
``achieve the optimal'': (1) capacity, location and composition
of petroleum products in the SPR; and, (2) storage and
distributional capabilities of the SPR. This section also
requires the plan to estimate the (financial) resources
necessary for the SPR's ``long-term sustainability and
operational effectiveness.''
Section 3006: Authorization to export natural gas
Subsection (a) requires DOE to issue a decision on any
pending or future application for authorization to export
natural gas under section 3 of the Natural Gas Act within 30
days of (1) the conclusion of the environmental review required
by NEPA or (2) the date of enactment of the bill. Subsection
(c) amends the Natural Gas Act to direct DOE, as a condition of
approval of any authorization to export LNG, to require the
applicant to publicly disclose the specific destinations of any
such exports.
As a result of low domestic natural gas prices in the
United States, companies have filed more than 40 applications
with DOE to export LNG. To date, DOE has granted final
authorizations for LNG exports to non-Free Trade Agreement
(FTA) countries on nine applications, and conditional
authorizations on four applications.\9\ The approved
applications authorize the export of over 14.05 billion cubic
feet per day of LNG to non-FTA countries,\10\ and the pending
applications collectively seek an additional 29.40 billion
cubic feet per day of LNG.
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\9\U.S. Department of Energy, Long Term Applications Received by
DOE/FE to Export Domestically Produced LNG from Lower-48 States (Oct.
14, 2015) (online atenergy.gov/sites/ prod/files/2015/10/f27/
Summary%20of%20LNG%20Export%20Applications.pdf ).
\10\DOE has granted final export authorization for 9.998 billion
cubic feet per day of LNG, and conditional authorization for 4.05
billion cubic feet per day of LNG.
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DOE is required to grant an application to export natural
gas to a country without a free trade agreement with the United
States unless it finds that the proposed export is not
consistent with the public interest.\11\ DOE evaluates a range
of factors when performing a public interest review of a non-
FTA application, including economic impacts, international
considerations, U.S. energy security, and environmental
considerations. FERC is responsible for issuing permits for
specific LNG export facilities. DOE relies on FERC's
environmental review to inform the DOE process. DOE prioritizes
the review of applications for which FERC has completed the
necessary environmental review.
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\11\For export to the 20 countries with a FTA with the United
States, the Natural Gas Act requires DOE to deem such applications
consistent with the public interest and grant them without modification
or delay.
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Section 3006 mandates that DOE issue final decisions on the
pending LNG export applications in 30 days. This will disrupt
the functioning approval process for pending and future LNG
export applications by arbitrarily limiting the time that DOE
has to review the applications. When faced with these time
limits, DOE will do one of two things: (1) DOE will approve
projects without an adequate public interest review, or (2) DOE
will deny applications when time constraints prevent it from
creating an adequate record.
Section 3006 will not accelerate the actual export of LNG.
And, because this section does not affect FERC's separate
permitting process for export terminals, the truncated DOE
process will not speed up the export of LNG. Further, the first
LNG export terminal in the U.S. (Sabine Pass) is expected to
begin partial operations in late 2015; other approved export
terminals are not expected to begin operations until 2017 or
2018.
Rep. Pallone offered an amendment to strike this section
during the full Committee markup. The amendment was defeated by
a voice vote.
Section 4115: Energy performance requirement for federal buildings &
Section 4116 federal building energy efficiency performance
standards; certification system and level for federal buildings
Section 4115 & 4116 repeal a key portion of section 433 of
the Energy Independence and Security Act, signed into law by
President George W. Bush. This section established energy
efficiency performance standards for the design of new federal
buildings and those federal buildings undergoing major
renovations. The provision strikes language in current law that
requires federal buildings to be designed to result in
decreased consumption of fossil fuels, including a 100 percent
reduction by 2030 compared to a similar building in 2003.
Sec. 433 established groundbreaking energy efficiency
performance standards for the design of new Federal buildings
and those Federal buildings undergoing major renovations. But
H.R. 8, as reported, strikes the requirement that new federal
buildings be designed to result in decreased consumption of
fossil fuels, a move that ACEEE estimates will deprive
consumers of $700 million in savings over the next 25
years.\12\
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\12\American Council for and Energy Efficient Economy, 2015 Federal
Energy Efficiency Legislation and Projected Impacts (Sept. 8, 2015)
(online at aceee.org/sites/default/files/ee-legislation-9-15-15.pdf).
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According to the American Institute of Architects, not only
are section 433's current targets achievable, but some
buildings are already meeting the 2030 target of a 100 percent
reduction in fossil fuel use now.\13\
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\13\The American Institute of Architects, EISA Section 433: Myth
vs. Fact (online at www.aia.org/aiaucmp/groups/aia/documents/pdf/
aiab098644.pdf).
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Section 4125: No warranty for certain certified energy star products
Section 4125 would prevent the creation of an express or
implied warranty based on a product's participation in the
Energy Star program. This provision eliminates consumers'
ability to seek restitution when they purchase Energy Star
products that do not deliver the associated energy savings.
Rep. Schakowsky offered an amendment to strike this section
during the full Committee markup. The amendment failed by a
vote of 21 yeas to 30 nays.
The American Association for Justice (AAJ) strongly opposes
this section. According to AAJ, ``Whirlpool and other large
corporations want a bailout for their Energy Star designated
appliances that do not actually save energy.''\14\ This is
because both consumers and manufacturers receive certain tax
code benefits, including credits and rebates, from purchasing
and manufacturing energy saving appliances.
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\14\American Association for Justice, Oppose Sec. 4125 of HR 8--
Energy Star Immunity (Sept. 2015).
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AAJ also notes that threats of companies pulling out of the
Energy Star program if warranty claims continue are not
credible.\15\ There are manufacturers who produce Energy Star
products that are compliant and do provide energy savings to
consumers.
---------------------------------------------------------------------------
\15\Id.
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Section 4126: Clarification to effective date for regional standards
Section 4126 amends Section 325 of the Energy Policy and
Conservation Act by changing the effective date of regional
standards from the date installed to the date ``manufactured or
imported into the United States.'' These changes severely limit
DOE's ability to enforce regional standards.
Sections 4151-4152: Building energy codes
Sections 4151 and 4152, comprising all of Chapter 5 of
Subtitle A, contain the provisions of H.R. 1273, The ``Energy
Savings and Building Efficiency Act,'' introduced by Reps.
Blackburn and Schrader. Proponents of these provisions say
they are intended to increase transparency and cost-
effectiveness in the development of model energy codes, which
set the baseline for energy efficiency in buildings by ensuring
that DOE code change proposals: (1) are made available to the
public, including calculations on costs and savings; (2) are
subject to the official rulemaking process, allowing for public
comment; and (3) take into account small business concerns.
This section also prohibits DOE from advocating for certain
technologies, building materials or construction practices and
requires that any code or proposal supported by the DOE has a
payback of ten years or less.
Rep. Pallone offered an amendment to strike this chapter
during the full Committee markup. The amendment failed by a
vote of 20 yeas to 28 nays.
The Alliance to Save Energy sent a letter to Chairman Upton
and the members of the Energy and Commerce Committee urging
opposition to the Blackburn-Schrader language on the grounds
that it would (1) ``weaken the already modest process of states
merely reporting on state building energy code programs;'' (2)
``severely limit DOE's authority to support the development and
adoption of building energy codes that boost the efficiency of
America's largest energy consuming sector; and'' (3)
``establish a federal `simple payback' that is confusing,
flawed, and strongly opposed by a broad coalition of
stakeholders.''\16\
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\16\Letter from the Alliance to Save Energy to Chairman Upton and
Members of the Energy and Commerce Committee (Sept. 16, 2015).
---------------------------------------------------------------------------
The Sierra Club also opposes Sections 4151 and 4152 of H.R.
8, noting that this non-consensus proposal would ``weaken the
opportunity that building energy codes presents to advance
energy efficiency[.]''\17\
---------------------------------------------------------------------------
\17\Letter from the Sierra Club to Ranking Member Pallone (Sept.
16, 2015).
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Section 4161: Modifying product definitions
Section 4161 would add a new Subsection (c) to Section 322
of the Energy Policy and Conservation Act (EPCA) to permit DOE
to revise prospectively product definitions relating to
appliance energy conservation standards for residential and
commercial products in order to address significant changes in
the product or market and ``enable efficiency of the product as
part of an energy using system.'' Under current law, certain
definitions cannot be revised absent a statutory change. The
provision would create a new process for modifying covered
product definitions that requires obtaining consensus through
either a negotiated rulemaking or submission to the Secretary
of a joint statement of stakeholders including manufacturers,
States and efficiency advocates. The revised product
definitions would be used for standards, test procedures,
labeling and preemption purposes. The new language would also
exempt such revised definitions from the anti-backsliding
provisions of the law contained in Section 325. This section
would also create a similar process for altering prospectively
the definitions for industrial equipment efficiency standards
in Sec. 340 of EPCA. Finally, the section makes conforming
changes to the EPCA Sec. 336 (judicial review) and Sec. 345
(regarding administration and enforcement).
Section 4162: Clarifying rulemaking procedures
Section 4162 would amend EPCA Section 325(p) to make a
number of changes to the procedures for prescribing a new or
amended efficiency standard that would provide more input and
leverage to manufacturers of covered products. First, the
section would require the Secretary to provide for public input
prior to issuing a proposed rule establishing a new efficiency
standard seeking information regarding ``design options,'' the
potential for ``voluntary non-regulatory actions'' and
identifying consumer and manufacturer subgroups ``that merit
analysis.'' Next, the proposal would add two additional
requirements to be taken into account during the comment period
of the proposed rule: that the technical ``assumptions, methods
and models'' used are justified and available for public
review, and that the total regulatory impact on manufacturers
is considered in light of other energy use standards and other
standards impacting those manufacturers. The section also
requires all standards be based upon a final revised test
procedure, if any, and that the public shall have at least 180
days between the publication of a final revised test procedure
and the end of the public comment period for a proposed product
standard to analyze, test and comment on its implications. The
provision would allow for an exception for consensus-revised
test procedures reached between manufacturers, States and
efficiency advocates.
Section 4171: Smart Energy and Water Efficiency Pilot Program
Section 4171 establishes a Smart Energy and Water
Efficiency Pilot Program at DOE to provide grants to eligible
entities to demonstrate advanced and innovative technology-
based solutions that will: (1) increase and improve the energy
efficiency of water, wastewater, and water reuse systems to
help communities make significant progress in conserving water,
saving energy, and reducing costs; (2) support the
implementation of innovative processes and the installation of
advanced automated systems that provide real-time data on
energy and water; and (3) improve energy and water
conservation, water quality, and predictive maintenance of
energy and water systems, through the use of Internet-connected
technologies, including sensors, intelligent gateways, and
security embedded in hardware.
This section was added to the bill by the AINS, and was
sponsored by Reps. McNerney and Kinzinger. While not
objectionable in principle, this section had not been
considered by committee members prior to the markup.
Section 4172: WaterSense
Section 4172 creates a voluntary program within EPA to
identify water efficient products, buildings, landscapes,
facilities, processes, and services that reduces water use,
reduce strain on public and community water systems, conserve
energy associated with water use, and preserve water resources
through product labeling.
This section was added to the bill by the AINS, and while
not objectionable in principle, this section had not been
considered by committee members prior to the markup.
Section 4222: Clarification of facility merger authorization
Section 4222 amends the Federal Power Act to permit without
FERC review, the merger or consolidation of public utility
facilities or parts thereof with a value $10,000,000 or less.
Sections 4231-4251: Code maintenance
These sections, comprising all of Chapter 3 of Subtitle B
was added by the majority in the AINS. During the full
committee markup, members were put in a position of voting for
over 20 additional provisions to repeal energy related reports,
studies, plans, surveys, and programs, without any previous
consideration or discussion.
AMENDMENTS OFFERED BY DEMOCRATIC MEMBERS
The Democratic Members of the Committee on Energy and
Commerce offered substantive amendments to H.R. 8 intended to
refocus the legislation on real deficiencies in America's
energy security and infrastructure.
Rep. Tonko offered an amendment to the Regional
Transmission Organization (RTO) and Independent System Operator
(ISO) reliability language in Section 1110 that would permit
RTOs and ISOs to have more flexibility in meeting reliability
requirements through planning. This amendment failed by a vote
of 22 yeas to 27 nays.
Ranking Member Pallone offered an amendment to restore the
funding levels and dates agreed to during negotiations with the
majority. The amendment failed by a vote of 23 yeas to 25 nays.
Rep. Rush offered an amendment to restore funding to
natural gas distribution system pipe repair and replacement.
The amendment also included language to insure that the program
remains focused on improving infrastructure and mitigating rate
increases for low-income consumers. This amendment failed by a
vote of 23 yeas to 25 nays.
Rep. Eshoo offered an amendment designed to improve FERC
transparency. The amendment was adopted by voice vote.
Rep. Green offered an amendment to provide funding to
offset rate increases paid by households as a result of
infrastructure maintenance, repair and replacement of natural
gas distribution systems. This language was similar to the
above amendment offered by Rep. Rush, but without the focus on
low-income consumers. The amendment was adopted voice vote.
Rep. Tonko offered an amendment to reauthorize the
weatherization assistance and state energy programs. This
amendment failed by a vote of 22 yeas to 24 nays.
Rep. Schakowsky offered an amendment to establish within
FERC an Offices of Consumer Advocacy and Compliance Assistance.
This amendment failed by a vote of 22 yeas to 25 nays.
Mr. Loebsack offered an amendment to promote the
development of distributed wind energy systems within DOE. This
amendment would make grants available for research and
development and provide technical assistance for entities
seeking alternative means of producing energy. This amendment
failed by a vote of 23 yeas to 25 nays.
Mr. Cardenas offered an amendment to create a loan and
grant program for solar installations in low-income and under-
served areas. This amendment failed by a vote of 23 yeas to 28
nays.
Mr. Butterfield offered an amendment to establish a grant
program for energy efficient homes. This amendment failed by a
vote of 22 yeas to 27 nays.
Ms. Castor offered an amendment to promote local energy
supply and resiliency through the use of distributed solar
power. This amendment failed by a vote of 22 yeas to 27 nays.
Ms. Eshoo offered an amendment to authorize federal
agencies to install electric vehicle charging stations or plug-
in points. The amendment is cost-neutral because it requires
the costs of installation to be paid for by the revenues
collected from the charging stations. It is identical to the
bipartisan H.R. 3509. This amendment was adopted by a voice
vote.
Ranking Member Pallone offered an amendment would prevent
Titles I through IV of this Act from taking effecting until the
Energy Information Administration analyzed and published a
report on the carbon impacts of the Act's provisions. This
amendment failed by a vote of 23 yeas to 29 nays.
CONCLUSION
It is truly unfortunate that, what began as good faith
negotiations between Democrats and Republicans to develop
energy legislation in the first part of this year, and bore
enough promise in July to merit discharge by the subcommittee
without partisan rancor, has ultimately produced one of the
most backward, unbalanced and partisan pieces of energy
legislation we have seen during our tenure on the Committee. At
every turn the legislation favors suppliers over consumers,
consumption over efficiency, energy interests over the
environment and the fossil fuels of the past over the clean
energy economy of the present and future.
Most importantly, H.R. 8 ignores the impact of climate
change--which remains the biggest threat to our energy
security, our economy and human health.
In fact, at nearly every turn, H.R. 8 goes to great length
to lock in fossil fuel generation and consumption well into the
future. The legislation creates new subsidies for above market
coal power in Sections 1107 and 1108. It also further tilts the
already lopsided natural gas pipeline siting process further
toward the gas industry at the expense of land owners, states,
the environment and less impactful carbon-free energy sources.
H.R. 8 also helps prop up fossil fuels by actively working for
greater consumption by repealing current law that is working to
reduce the federal government's carbon footprint and by putting
in place rollbacks and barriers to energy efficiency standards
for buildings and appliances. Not only does the legislation
reverse course on energy efficiency, but it erects barriers to
the increasingly successful integration of clean, renewable and
distributed energy technologies at almost every turn.
Amazingly, the one renewable technology that receives any real
boost in H.R. 8 is hydroelectric power, a 100 year old
technology, which has ironically become less reliable due to
the impact of climate change and will increase its negative
impacts on the environment as a result of this legislation.
H.R. 8 also fails to take any meaningful steps to repair or
revitalize our energy infrastructure for the future. Democrats
and Republicans appeared to find common ground in the
infrastructure recommendations of the Quadrennial Energy Review
and yet the legislation fails to capitalize on those areas of
agreement in any meaningful way. Language proposed by
Democrats, backed with meaningful funding, could have been the
basis for a bipartisan energy bill that incentivized repairs of
leaking natural gas distribution pipelines while protecting
low-income consumers; provided funding to help communities make
the grid more resilient to the effects of climate change and
more responsive to the technologies that will help address its
causes; and modernize both the infrastructure and operation of
the Strategic Petroleum Reserve. At the end of the day,
Republicans rejected the $5.0 billion carefully targeted and
paid for investment in our infrastructure which they worked
with us to develop, to pursue little more than pale,
meaningless copies of what had appeared to be a grand, shared
vision.
Ultimately, H.R. 8 presents a vision of energy policy that
is narrow, outdated, economically and environmentally
unsustainable and myopically focused on producers at the
expense of consumers. For those reasons and the many others we
have enumerated here, we respectfully dissent from the views of
the Majority on H.R. 8.
Frank Pallone, Jr.,
Ranking Member.
Bobby L. Rush,
Ranking Member,
Subcommittee on Energy and
Power.