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Text of the Smart Energy Act

This bill was introduced on February 14, 2012, in a previous session of Congress, but was not enacted. The text of the bill below is as of Feb 14, 2012 (Introduced).

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I

112th CONGRESS

2d Session

H. R. 4017

IN THE HOUSE OF REPRESENTATIVES

February 14, 2012

(for himself, Mr. Matheson, Mr. Dold, Mr. Welch, Mr. Barrow, and Mr. Fitzpatrick) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Oversight and Government Reform and Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To promote efficient energy use in the Federal and private sectors, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Smart Energy Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—Federal Energy Use and Generation

Sec. 101. Utilizing energy savings performance contracts.

Sec. 102. Demand response programs.

Sec. 103. Federal data center consolidation.

Sec. 104. Adoption of personal computer power savings techniques by Federal agencies.

Sec. 105. Best practices for advanced metering.

Sec. 106. Federal energy management and data collection standard.

Title II—Providing Opportunities for Energy Efficiency in Business and Industry

Sec. 201. Loan program for energy efficiency upgrades to existing buildings.

Sec. 202. Coordination of research and development of energy efficient technologies for industry.

Sec. 203. Combined heat and power and waste heat recovery.

I

Federal Energy Use and Generation

101.

Utilizing energy savings performance contracts and utility energy service contracts

(a)

Implementation of energy management requirements

Section 543(f)(10) of the National Energy Conservation Policy Act (42 U.S.C. 8253(f)(10)) is amended—

(1)

in subparagraph (B)(i), by striking To carry and inserting To the extent consistent with subparagraph (C), to carry;

(2)

in subparagraph (B)(ii), by striking A Federal and inserting To the extent consistent with subparagraph (C), a Federal; and

(3)

by amending subparagraph (C) to read as follows:

(C)

Implementation

(i)

General rule

Except as provided in clause (i) or (ii) of this subparagraph, each Federal agency shall implement the requirements under this subsection through private financing described in subparagraph (B)(i)(II).

(ii)

Exception

A Federal agency may implement the requirements under this subsection using appropriated funds described in subparagraph (B)(i)(I) if implementation pursuant to clause (i) of this subparagraph conflicts with the primary mission of the agency or facility, or if greater cost savings can be generated under a different program. A Federal agency shall provide a written justification for any decision to implement such requirements under this clause, including an analysis of the impact of such decision on the taxpayer.

(iii)

Federal administrative costs

A Federal agency may implement the requirements under this subsection using appropriated funds described in subparagraph (B)(i)(I) to the extent necessary to cover Federal administrative costs with respect to implementation pursuant to clause (i) of this subparagraph.

.

(b)

Termination clauses

Section 801(b)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(b)(2)) is amended—

(1)

by striking and at the end of subparagraph (B);

(2)

by striking the period at the end of subparagraph (C)(iv) and inserting ; and; and

(3)

by adding at the end the following new subparagraph:

(D)

require each agency to include in contracts appropriate termination clauses for facilities that will or may close before the end of the term of the contract.

.

(c)

ESPCs for electric vehicles and fueling infrastructure

Section 804 of the National Energy Conservation Policy Act (42 U.S.C. 8287c) is amended—

(1)

by striking or at the end of subparagraph (A);

(2)

by striking the period at the end of subparagraph (B) and inserting ; or; and

(3)

by adding at the end the following new subparagraph:

(C)

a measure to support the use of electric vehicles or the fueling or charging infrastructure necessary for electric vehicles.

.

(d)

UESCs for Electric Vehicles and Fueling Infrastructure

Section 546 of the National Energy Conservation Policy Act (42 U.S.C. 8256) is amended in subsection (c)(1) by inserting , including measures taken to finance the acquisition or use of electric-powered vehicles or their fueling infrastructure, after demand.

102.

Demand response programs

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended—

(1)

by redesignating the second subsection (f) as subsection (g); and

(2)

by adding at the end the following new subsection:

(h)

Demand response programs

To carry out this section, a Federal agency shall participate in demand response programs offered by electric utilities, Independent System Operators, Regional Transmission Organizations, and demand response aggregators, where such programs are available, if such participation does not conflict with the primary mission of the agency or facility, in order to support electric grid reliability and security and reduce energy bills for the agency or facility.

.

103.

Federal data center consolidation

(a)

Definition

In this section, the term Federal data center means a room or space in a Federal building that is used for housing computer servers, data storage devices, or network equipment, including server closets.

(b)

OMB requirements

The Director of the Office of Management and Budget shall direct the Federal Chief Information Officer to—

(1)

require that agencies, when updating their Federal data center inventories in the third quarter of each fiscal year, state what actions have been taken to verify the inventories and to identify any limitations of this information;

(2)

require that agencies complete the missing elements in their respective plans and submit complete Federal data center consolidation plans, or provide a schedule for when they will do so, not later than 180 days after the date of enactment of this Act;

(3)

require agencies to consider consolidation challenges and lessons learned when updating their consolidation plans; and

(4)

utilize the existing accountability infrastructure by requiring the Data Center Consolidation Task Force to assess agency consolidation plans to ensure they are complete and to monitor the agencies’ implementation of their plans.

(c)

Department and agency requirements

Each of the department secretaries and agency heads of the 23 departments and agencies participating in the Office of Management and Budget’s Federal data center consolidation initiative shall—

(1)

direct their component agencies and their Federal data center consolidation program managers to complete the missing elements in their respective Federal data center consolidation inventories and plans; and

(2)

require their Federal data center consolidation program managers to consider consolidation challenges and lessons learned when updating their consolidation plans.

104.

Adoption of personal computer power savings techniques by Federal agencies

(a)

In general

Not later than 360 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Defense, the Secretary of Veterans Affairs, and the Administrator of General Services, shall issue guidance for Federal agencies to employ advanced tools allowing energy savings through the use of computer hardware, energy efficiency software, and power management tools.

(b)

Reports on plans and savings

Not later than 180 days after the date of the issuance of the guidance under subsection (a), each Federal agency shall submit to the Secretary of Energy a report that describes—

(1)

the plan of the agency for implementing the guidance within the agency; and

(2)

estimated energy and financial savings from employing the tools described in subsection (a).

105.

Best practices for advanced metering

Section 543(e) of the National Energy Conservation Policy Act (42 U.S.C. 8253(e)) is amended by striking paragraph (3) and inserting the following:

(3)

Plan

(A)

In general

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—

(i)

how the agency will designate personnel primarily responsible for achieving the requirements; and

(ii)

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.

(B)

Updates

Reports submitted under subparagraph (A) shall be updated annually.

(4)

Best practices report

(A)

In general

Not later than 180 days after the date of enactment of the Smart Energy Act, 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)

Updating

The report described under subparagraph (A) shall be updated annually.

(C)

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.

.

106.

Federal energy management and data collection standard

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended—

(1)

by redesignating the second subsection (f) (as added by section 434(a) of Public Law 110–140 (121 Stat. 1614)) as subsection (g); and

(2)

in subsection (f)(7), by striking subparagraph (A) and inserting the following:

(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.

.

II

Providing Opportunities for Energy Efficiency in Business and Industry

201.

Loan program for energy efficiency upgrades to existing buildings

Title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended by adding at the end the following:

1706.

Building retrofit financing program

(a)

Definitions

In this section:

(1)

Credit support

The term credit support means a guarantee or commitment to issue a guarantee or other forms of credit enhancement to ameliorate risks for efficiency obligations.

(2)

Efficiency obligation

The term efficiency obligation means a debt or repayment obligation incurred in connection with financing a project, or a portfolio of such debt or payment obligations.

(3)

Project

The term project means the installation and implementation of efficiency, advanced metering, distributed generation, or renewable energy technologies and measures in a building (or in multiple buildings on a given property) that are expected to increase the energy efficiency of the building (including fixtures) in accordance with criteria established by the Secretary.

(b)

Eligible projects

(1)

In general

Notwithstanding sections 1703 and 1705, the Secretary may provide credit support under this section, in accordance with section 1702.

(2)

Inclusions

Buildings eligible for credit support under this section include commercial, multifamily residential, industrial, municipal, government, institution of higher education, school, and hospital facilities that satisfy criteria established by the Secretary.

(c)

Guidelines

(1)

In general

Not later than 180 days after the date of enactment of this section, the Secretary shall—

(A)

establish guidelines for credit support provided under this section; and

(B)

publish the guidelines in the Federal Register; and

(C)

provide for an opportunity for public comment on the guidelines.

(2)

Requirements

The guidelines established by the Secretary under this subsection shall include—

(A)

standards for assessing the energy savings that could reasonably be expected to result from a project;

(B)

examples of financing mechanisms (and portfolios of such financing mechanisms) that qualify as efficiency obligations;

(C)

the threshold levels of energy savings that a project, at the time of issuance of credit support, shall be reasonably expected to achieve to be eligible for credit support;

(D)

the eligibility criteria the Secretary determines to be necessary for making credit support available under this section; and

(E)

notwithstanding subsections (d)(3) and (g)(2)(B) of section 1702, lien priority and credit risk protections established by the Secretary, in consultation with the Director of the Office of Management and Budget, which shall include—

(i)

requirements to preserve priority lien status of secured lenders and creditors in buildings eligible for credit support;

(ii)

remedies available to the Secretary under chapter 176 of title 28, United States Code, in the event of default on the efficiency obligation by the borrower; and

(iii)

measures to limit the exposure of the Secretary to financial risk in the event of default, such as—

(I)

the collection of a credit subsidy fee from the borrower as a loan loss reserve, taking into account the limitation on credit support under subsection (d);

(II)

minimum debt-to-income levels of the borrower;

(III)

minimum levels of value relative to outstanding mortgage or other debt on a building eligible for credit support;

(IV)

allowable thresholds for the percent of the efficiency obligation relative to the amount of any mortgage or other debt on an eligible building;

(V)

analysis of historic and anticipated occupancy levels and rental income of an eligible building;

(VI)

requirements of third-party contractors to guarantee energy savings that will result from a retrofit project, and whether financing on the efficiency obligation will amortize from the energy savings;

(VII)

requirements that the retrofit project incorporate protocols to measure and verify energy savings; and

(VIII)

recovery of payments equally by the Secretary and the retrofit.

(3)

Efficiency obligations

The financing mechanisms qualified by the Secretary under paragraph (2)(B) may include—

(A)

loans, including loans made by the Federal Financing Bank;

(B)

power purchase agreements, including energy efficiency power purchase agreements;

(C)

energy services agreements, including energy performance contracts;

(D)

property assessed clean energy bonds and other tax assessment-based financing mechanisms;

(E)

aggregate on-meter agreements that finance retrofit projects; and

(F)

any other efficiency obligations the Secretary determines to be appropriate.

(4)

Priorities

In carrying out this section, the Secretary shall prioritize—

(A)

the maximization of energy savings with the available credit support funding;

(B)

the establishment of a clear application and approval process that allows private building owners, lenders, and investors to reasonably expect to receive credit support for projects that conform to guidelines;

(C)

the distribution of projects receiving credit support under this section across States or geographical regions of the United States; and

(D)

projects designed to achieve whole-building retrofits.

(d)

Limitation

Notwithstanding section 1702(c), the Secretary shall not issue credit support under this section in an amount that exceeds—

(1)

90 percent of the principal amount of the efficiency obligation that is the subject of the credit support; or

(2)

$10,000,000 for any single project.

(e)

Aggregation of projects

To the extent provided in the guidelines developed in accordance with subsection (c), the Secretary may issue credit support on a portfolio, or pool of projects, that are not required to be geographically contiguous, if each efficiency obligation in the pool fulfills the requirements described in this section.

(f)

Application

(1)

In general

To be eligible to receive credit support under this section, the applicant shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be necessary.

(2)

Contents

An application submitted under this section shall include assurances by the applicant that—

(A)

each contractor carrying out the project meets minimum experience level criteria, including local retrofit experience, as determined by the Secretary;

(B)

the project is reasonably expected to achieve energy savings, as set forth in the application using any methodology that meets the standards described in the program guidelines;

(C)

the project meets any technical criteria described in the program guidelines;

(D)

the recipient of the credit support and the parties to the efficiency obligation will provide the Secretary with—

(i)

any information the Secretary requests to assess the energy savings that result from the project, including historical energy usage data, a simulation-based benchmark, and detailed descriptions of the building work, as described in the program guidelines; and

(ii)

permission to access information relating to building operations and usage for the period described in the program guidelines; and

(E)

any other assurances that the Secretary determines to be necessary.

(3)

Determination

Not later than 90 days after receiving an application, the Secretary shall make a final determination on the application, which may include requests for additional information.

(g)

Fees

(1)

In general

In addition to the fees required by section 1702(h)(1), the Secretary may charge reasonable fees for credit support provided under this section.

(2)

Availability

Fees collected under this section shall be subject to section 1702(h)(2).

(h)

Underwriting

The Secretary may delegate the underwriting activities under this section to 1 or more entities that the Secretary determines to be qualified.

(i)

Report

Not later than 1 year after commencement of the program, the Secretary shall submit to the appropriate committees of Congress a report that describes in reasonable detail—

(1)

the manner in which this section is being carried out;

(2)

the number and type of projects supported;

(3)

the types of funding mechanisms used to provide credit support to projects;

(4)

the energy savings expected to result from projects supported by this section;

(5)

any tracking efforts the Secretary is using to calculate the actual energy savings produced by the projects; and

(6)

any plans to improve the tracking efforts described in paragraph (5).

.

202.

Coordination of research and development of energy efficient technologies for industry

(a)

In general

As part of the research and development activities of the Advanced Manufacturing Office of the Department of Energy, the Secretary of Energy shall establish, as appropriate, collaborative research and development partnerships with other programs within the Office of Energy Efficiency and Renewable Energy (including the Building Technologies Program), the Office of Electricity Delivery and Energy Reliability, and the Office of Science that—

(1)

leverage the research and development expertise of those programs to promote early stage energy efficiency technology development;

(2)

support the use of innovative manufacturing processes and applied research for development, demonstration, and commercialization of new technologies and processes to improve efficiency, reduce emissions, reduce industrial waste, and improve industrial cost-competitiveness; and

(3)

apply the knowledge and expertise of the Advanced Manufacturing Office to help achieve the program goals of the other programs.

(b)

Reports

Not later than 2 years after the date of enactment of this Act and biennially thereafter, the Secretary of Energy shall submit to Congress a report that describes actions taken to carry out subsection (a) and the results of those actions.

203.

Combined heat and power and waste heat recovery

(a)

Goal

It is the goal of the United States to, not later than December 31, 2020, achieve a doubling of the production of electricity from combined heat and power and waste heat recovery in the United States from the current level of approximately 85 to at least 170 gigawatts by 2020 and thereby improve the energy efficiency of the industrial sector.

(b)

Strategic plan

(1)

In general

Not later than 1 year after the date of enactment of this Act, and biennially thereafter, the Secretary of Energy (referred to in this section as the Secretary), in cooperation with the heads of other appropriate Federal agencies, shall transmit to the Congress and make available to the public a strategic plan, or update thereof, to achieve the national goal established under subsection (a).

(2)

Public input and comment

The Secretary shall develop the strategic plan in a manner that provides appropriate opportunities for public input and comment.

(3)

Plan contents

The strategic plan shall—

(A)

establish policy priorities and identify requirements to ensure compliance with the national goal established under subsection (a);

(B)

include estimates for achievable increases in combined heat and power and waste heat recovery production and for energy savings that will be achieved by those increases; and

(C)

include data collection and compilation methodologies used to establish baselines and document energy savings data.

(4)

Plan updates

(A)

Inclusion in national energy policy plan

The Secretary shall include each updated strategic plan in the National Energy Policy Plan required by section 801 of the Department of Energy Organization Act (42 U.S.C. 7321).

(B)

Contents

In updating the strategic plan, the Secretary shall—

(i)

report on progress made toward implementing combined heat and power and waste heat recovery policies to achieve the national goal established under subsection (a); and

(ii)

verify, to the maximum extent practicable, energy savings resulting from those policies.