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S. 2012 (114th): North American Energy Security and Infrastructure Act of 2016


The text of the bill below is as of Apr 20, 2016 (Passed the Senate).

Summary of this bill

This week, the Senate began debate on the first major energy legislation to be considered since 2007. Introduced by Sen. Lisa Murkowski (R-AK), the bill -- S. 2012, the Energy Policy Modernization Act -- received an unlikely overwhelming bipartisan vote when it passed out of committee 18-4 in September.

In addition, it has the rare accomplishment of being supported by both Senate Majority Leader Mitch McConnell (R-KY) and Senate Minority Leader Harry Reid (D-NV). This is seen by many as a possible indication of bipartisan support to come among the full Senate, especially after the bitterly partisan divide last year over another energy issue: whether to authorize construction of the Keystone XL ...


114th CONGRESS

2d Session

S. 2012

IN THE SENATE OF THE UNITED STATES

AN ACT

To provide for the modernization of the energy policy of the United States, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Energy Policy Modernization Act of 2016.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—Efficiency

Subtitle A—Buildings

Sec. 1001. Greater energy efficiency in building codes.

Sec. 1002. Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units.

Sec. 1003. Coordination of energy retrofitting assistance for schools.

Sec. 1004. Energy efficiency materials pilot program.

Sec. 1005. Utility energy service contracts.

Sec. 1006. Use of energy and water efficiency measures in Federal buildings.

Sec. 1007. Building training and assessment centers.

Sec. 1008. Career skills training.

Sec. 1009. Energy-efficient and energy-saving information technologies.

Sec. 1010. Availability of funds for design updates.

Sec. 1011. Energy efficient data centers.

Sec. 1012. Weatherization Assistance Program.

Sec. 1013. Reauthorization of State energy program.

Sec. 1014. Smart building acceleration.

Sec. 1015. Repeal of fossil phase-out.

Sec. 1016. Federal building energy efficiency performance standards.

Sec. 1017. Codification of Executive Order.

Sec. 1018. Certification for green buildings.

Sec. 1019. High performance green federal buildings.

Sec. 1020. Evaluation of potentially duplicative green building programs.

Sec. 1021. Study and report on energy savings benefits of operational efficiency programs and services.

Sec. 1022. Use of Federal disaster relief and emergency assistance for energy-efficient products and structures.

Sec. 1023. Watersense.

Subtitle B—Appliances

Sec. 1101. Extended product system rebate program.

Sec. 1102. Energy efficient transformer rebate program.

Sec. 1103. Standards for certain furnaces.

Sec. 1104. Third-party certification under Energy Star program.

Sec. 1105. Energy conservation standards for commercial refrigeration equipment.

Sec. 1106. Voluntary verification programs for air conditioning, furnace, boiler, heat pump, and water heater products.

Sec. 1107. Application of energy conservation standards to certain external power supplies.

Subtitle C—Manufacturing

Sec. 1201. Manufacturing energy efficiency.

Sec. 1202. Leveraging existing Federal agency programs to assist small and medium manufacturers.

Sec. 1203. Leveraging smart manufacturing infrastructure at National Laboratories.

Subtitle D—Vehicles

Sec. 1301. Short title.

Sec. 1302. Objectives.

Sec. 1303. Coordination and nonduplication.

Sec. 1304. Authorization of appropriations.

Sec. 1305. Reporting.

PART I—Vehicle Research and Development

Sec. 1306. Program.

Sec. 1307. Manufacturing.

PART II—Medium- and Heavy-Duty Commercial and Transit Vehicles

Sec. 1308. Program.

Sec. 1309. Class 8 truck and trailer systems demonstration.

Sec. 1310. Technology testing and metrics.

Sec. 1311. Nonroad systems pilot program.

PART III—Administration

Sec. 1312. Repeal of existing authorities.

Sec. 1313. Reauthorization of diesel emissions reduction program.

Sec. 1314. Gaseous fuel dual fueled automobiles.

Subtitle E—Short title

Sec. 1401. Short title.

Subtitle F—Housing

Sec. 1501. Definitions.

Sec. 1502. Enhanced energy efficiency underwriting criteria.

Sec. 1503. Enhanced energy efficiency underwriting valuation guidelines.

Sec. 1504. Monitoring.

Sec. 1505. Rulemaking.

Sec. 1506. Additional study.

TITLE II—Infrastructure

Subtitle A—Cybersecurity

Sec. 2001. Cybersecurity threats.

Sec. 2002. Enhanced grid security.

Subtitle B—Strategic Petroleum Reserve

Sec. 2101. Strategic Petroleum Reserve modernization.

Sec. 2102. Strategic petroleum reserve drawdown and sale.

Subtitle C—Trade

Sec. 2201. Action on applications to export liquefied natural gas.

Sec. 2202. Public disclosure of liquefied natural gas export destinations.

Sec. 2203. Energy data collaboration.

Subtitle D—Electricity and energy storage

Sec. 2301. Grid storage program.

Sec. 2302. Electric system grid architecture, scenario development, and modeling.

Sec. 2303. Hybrid micro-grid systems for isolated and resilient communities.

Sec. 2304. Voluntary model pathways.

Sec. 2305. Performance metrics for electricity infrastructure providers.

Sec. 2306. State and regional electricity distribution planning.

Sec. 2307. Authorization of appropriations.

Sec. 2308. Electric transmission infrastructure permitting.

Sec. 2309. Report by transmission organizations on distributed energy resources and micro-grid systems.

Sec. 2310. Net metering study guidance.

Sec. 2311. Model guidance for combined heat and power systems and waste heat to power systems.

Subtitle E—Computing

Sec. 2401. Exascale computer research program.

TITLE III—Supply

Subtitle A—Renewables

PART I—Hydroelectric

Sec. 3001. Hydropower regulatory improvements.

Sec. 3002. Hydroelectric production incentives and efficiency improvements.

Sec. 3003. Extension of time for a Federal Energy Regulatory Commission project involving Clark Canyon Dam.

Sec. 3004. Extension of time for a Federal Energy Regulatory Commission project involving Gibson Dam.

PART II—Geothermal

SUBPART A—Geothermal energy

Sec. 3005. National goals for production and site identification.

Sec. 3006. Priority areas for development on Federal land.

Sec. 3007. Facilitation of coproduction of geothermal energy on oil and gas leases.

Sec. 3008. Noncompetitive leasing of adjoining areas for development of geothermal resources.

Sec. 3009. Report to Congress.

Sec. 3010. Authorization of appropriations.

SUBPART B—Development of geothermal, solar, and wind energy on public land

Sec. 3011. Definitions.

Sec. 3011A. Land use planning; supplements to programmatic environmental impact statements.

Sec. 3011B. Environmental review on covered land.

Sec. 3011C. Program to improve renewable energy project permit coordination.

Sec. 3011D. Savings clause.

SUBPART C—Geothermal exploration

Sec. 3012. Geothermal exploration test projects.

PART III—Marine Hydrokinetic

Sec. 3013. Definition of marine and hydrokinetic renewable energy.

Sec. 3014. Marine and hydrokinetic renewable energy research and development.

Sec. 3015. National Marine Renewable Energy Research, Development, and Demonstration Centers.

Sec. 3016. Authorization of appropriations.

PART IV—Biomass

Sec. 3017. Policies relating to biomass energy.

Subtitle B—Oil and Gas

Sec. 3101. Amendments to the Methane Hydrate Research and Development Act of 2000.

Sec. 3102. Liquefied natural gas study.

Sec. 3103. FERC process coordination with respect to regulatory approval of gas projects.

Sec. 3104. Pilot program.

Sec. 3105. GAO review and report.

Sec. 3106. Ethane storage study.

Sec. 3107. Aliso Canyon natural gas leak task force.

Sec. 3108. Report on incorporating Internet-based lease sales.

Sec. 3109. Denali National Park and Preserve natural gas pipeline.

Subtitle C—Helium

Sec. 3201. Rights to helium.

Subtitle D—Critical Minerals

Sec. 3301. Definitions.

Sec. 3302. Policy.

Sec. 3303. Critical mineral designations.

Sec. 3304. Resource assessment.

Sec. 3305. Permitting.

Sec. 3306. Federal Register process.

Sec. 3307. Recycling, efficiency, and alternatives.

Sec. 3308. Analysis and forecasting.

Sec. 3309. Education and workforce.

Sec. 3310. National geological and geophysical data preservation program.

Sec. 3311. Administration.

Sec. 3312. Authorization of appropriations.

Subtitle E—Coal

Sec. 3401. Sense of the Senate on carbon capture, use, and storage development and deployment.

Sec. 3402. Fossil energy.

Sec. 3403. Establishment of coal technology program.

Sec. 3404. Report on price stabilization support.

Subtitle F—Nuclear

Sec. 3501. Nuclear energy innovation capabilities.

Sec. 3502. Next generation nuclear plant project.

Subtitle G—Workforce development

Sec. 3601. 21st Century Energy Workforce Advisory Board.

Sec. 3602. Energy workforce pilot grant program.

Subtitle H—Recycling

Sec. 3701. Recycled carbon fiber.

Sec. 3702. Energy generation and regulatory relief study regarding recovery and conversion of nonrecycled mixed plastics.

Sec. 3703. Eligible projects.

Sec. 3704. Promoting use of reclaimed refrigerants in Federal facilities.

Subtitle I—Thermal energy

Sec. 3801. Modifying the definition of renewable energy to include thermal energy.

TITLE IV—Accountability

Subtitle A—Loan programs

Sec. 4001. Terms and conditions for incentives for innovative technologies.

Sec. 4002. State loan eligibility.

Sec. 4003. GAO Study on fossil loan guarantee incentive program.

Sec. 4004. Program eligibility for vessels.

Sec. 4005. Additional reforms.

Sec. 4006. Department of Energy Indian energy education planning and management assistance program.

Subtitle B—Energy-Water nexus

Sec. 4101. Nexus of energy and water for sustainability.

Sec. 4102. Smart energy and water efficiency pilot program.

Subtitle C—Innovation

Sec. 4201. America COMPETES programs.

Sec. 4202. Inclusion of early stage technology demonstration in authorized technology transfer activities.

Sec. 4203. Supporting access of small business concerns to National Laboratories.

Sec. 4204. Microlab technology commercialization.

Sec. 4205. Sense of the Senate on accelerating energy innovation.

Sec. 4206. Restoration of Laboratory Directed Research and Development Program.

Sec. 4207. National Science and Technology Council coordinating subcommittee for high-energy physics.

Subtitle D—Grid reliability

Sec. 4301. Bulk-power system reliability impact statement.

Sec. 4302. Report by transmission organizations on diversity of supply.

Subtitle E—Management

Sec. 4401. Federal land management.

Sec. 4402. Quadrennial Energy Review.

Sec. 4403. State oversight of oil and gas programs.

Sec. 4404. Under Secretary for Science and Energy.

Sec. 4405. Western Area Power Administration pilot project.

Sec. 4406. Research grants database.

Sec. 4407. Review of economic impact of BSEE rule on small entities.

Sec. 4408. Energy emergency response efforts of the Department.

Sec. 4409. GAO report on Bureau of Safety and Environmental Enforcement statutory and regulatory authority for the procurement of helicopter fuel.

Sec. 4410. Conveyance of federal land within the Swan Lake hydroelectric project boundary.

Sec. 4411. Study of waivers of certain cost-sharing requirements.

Sec. 4412. National park centennial.

Sec. 4413. Program to reduce the potential impacts of solar energy facilities on certain species.

Sec. 4414. Wild horses in and around the Currituck National Wildlife Refuge.

Subtitle F—Markets

Sec. 4501. Enhanced information on critical energy supplies.

Sec. 4502. Working Group on Energy Markets.

Sec. 4503. Study of regulatory framework for energy markets.

Subtitle G—Affordability

Sec. 4601. E-prize competition pilot program.

Sec. 4602. Carbon dioxide capture technology prize.

Subtitle H—Code maintenance

Sec. 4701. Repeal of off-highway motor vehicles study.

Sec. 4702. Repeal of methanol study.

Sec. 4703. Repeal of authorization of appropriations provision.

Sec. 4704. Repeal of residential energy efficiency standards study.

Sec. 4705. Repeal of weatherization study.

Sec. 4706. Repeal of report to Congress.

Sec. 4707. Repeal of report by General Services Administration.

Sec. 4708. Repeal of intergovernmental energy management planning and coordination workshops.

Sec. 4709. Repeal of Inspector General audit survey and President's Council on Integrity and Efficiency report to Congress.

Sec. 4710. Repeal of procurement and identification of energy efficient products program.

Sec. 4711. Repeal of national action plan for demand response.

Sec. 4712. Repeal of national coal policy study.

Sec. 4713. Repeal of study on compliance problem of small electric utility systems.

Sec. 4714. Repeal of study of socioeconomic impacts of increased coal production and other energy development.

Sec. 4715. Repeal of study of the use of petroleum and natural gas in combustors.

Sec. 4716. Repeal of submission of reports.

Sec. 4717. Repeal of electric utility conservation plan.

Sec. 4718. Emergency Energy Conservation repeals.

Sec. 4719. Energy Security Act repeals.

Sec. 4720. Nuclear Safety Research, Development, and Demonstration Act of 1980 repeals.

Sec. 4721. Elimination and consolidation of certain America COMPETES programs.

Sec. 4722. Repeal of state utility regulatory assistance.

Sec. 4723. Repeal of survey of energy saving potential.

Sec. 4724. Repeal of photovoltaic energy program.

Sec. 4725. Repeal of energy auditor training and certification.

Sec. 4726. Repeal of authorization of appropriations.

Sec. 4727. Repeal of Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989.

Sec. 4728. Repeal of hydrogen research, development, and demonstration program.

Sec. 4729. Repeal of study on alternative fuel use in nonroad vehicles and engines.

Sec. 4730. Repeal of low interest loan program for small business fleet purchases.

Sec. 4731. Repeal of technical and policy analysis for replacement fuel demand and supply information.

Sec. 4732. Repeal of 1992 Report on Climate Change.

Sec. 4733. Repeal of Director of Climate Protector establishment.

Sec. 4734. Repeal of 1994 report on global climate change emissions.

Sec. 4735. Repeal of telecommuting study.

Sec. 4736. Repeal of advanced buildings for 2005 program.

Sec. 4737. Repeal of Energy Research, Development, Demonstration, and Commercial Application Advisory Board.

Sec. 4738. Repeal of study on use of energy futures for fuel purchase.

Sec. 4739. Repeal of energy subsidy study.

Sec. 4740. Modernization of terms relating to minorities.

TITLE V—Conservation reauthorization

Sec. 5001. National Park Service Maintenance and Revitalization Conservation Fund.

Sec. 5002. Land and Water Conservation Fund.

Sec. 5003. Historic Preservation Fund.

Sec. 5004. Conservation incentives landowner education program.

TITLE VI—Indian tribal energy development and self-determination

Sec. 6001. Short title.

Subtitle A—Indian tribal energy development and self-determination act amendments

Sec. 6011. Indian tribal energy resource development.

Sec. 6012. Indian tribal energy resource regulation.

Sec. 6013. Tribal energy resource agreements.

Sec. 6014. Technical assistance for Indian tribal governments.

Sec. 6015. Conforming amendments.

Sec. 6016. Report.

Subtitle B—Miscellaneous amendments

Sec. 6201. Issuance of preliminary permits or licenses.

Sec. 6202. Tribal biomass demonstration project.

Sec. 6203. Weatherization program.

Sec. 6204. Appraisals.

Sec. 6205. Leases of restricted lands for Navajo Nation.

Sec. 6206. Extension of tribal lease period for the Crow Tribe of Montana.

Sec. 6207. Trust status of lease payments.

TITLE VII—Brownfields reauthorization

Sec. 7001. Short title.

Sec. 7002. Expanded eligibility for nonprofit organizations.

Sec. 7003. Multipurpose brownfields grants.

Sec. 7004. Treatment of certain publicly owned brownfield sites.

Sec. 7005. Increased funding for remediation grants.

Sec. 7006. Allowing administrative costs for grant recipients.

Sec. 7007. Small community technical assistance grants.

Sec. 7008. Waterfront brownfields grants.

Sec. 7009. Clean energy brownfields grants.

Sec. 7010. Targeted funding for States.

Sec. 7011. Authorization of appropriations.

TITLE VIII—Miscellaneous

Sec. 8001. Removal of use restriction.

TITLE IX—Miscellaneous

Sec. 9001. Interagency transfer of land along George Washington Memorial Parkway.

TITLE X—Natural Resources

Subtitle A—Land conveyances and related matters

Sec. 10001. Arapaho National Forest boundary adjustment.

Sec. 10002. Land conveyance, Elkhorn Ranch and White River National Forest, Colorado.

Sec. 10003. Land exchange in Crags, Colorado.

Sec. 10004. Cerro del Yuta and Río San Antonio Wilderness Areas.

Sec. 10005. Clarification relating to a certain land description under the Northern Arizona Land Exchange and Verde River Basin Partnership Act of 2005.

Sec. 10006. Cooper Spur land exchange clarification amendments.

Sec. 10007. Expedited access to certain Federal land.

Sec. 10008. Black Hills National Cemetery boundary modification.

Subtitle B—National Park Management, Studies, and Related Matters

Sec. 10101. Refund of funds used by States to operate national parks during shutdown.

Sec. 10102. Lower Farmington and Salmon Brook recreational rivers.

Sec. 10103. Special resource study of President Street Station.

Sec. 10104. Special resource study of Thurgood Marshall's elementary school.

Sec. 10105. Special resource study of James K. Polk presidential home.

Sec. 10106. North Country National Scenic Trail route adjustment.

Sec. 10107. Designation of Jay S. Hammond Wilderness Area.

Sec. 10108. Advisory Council on Historic Preservation.

Sec. 10109. Establishment of a visitor services facility on the Arlington Ridge tract.

Subtitle C—Sportsmen's access and land management issues

PART I—National policy

Sec. 10201. Congressional declaration of national policy.

PART II—Sportsmen’s access to federal land

Sec. 10211. Definitions.

Sec. 10212. Federal land open to hunting, fishing, and recreational shooting.

Sec. 10213. Closure of Federal land to hunting, fishing, and recreational shooting.

Sec. 10214. Shooting ranges.

Sec. 10215. Federal action transparency.

PART III—Filming on federal land management agency land

Sec. 10221. Commercial filming.

PART IV—Bows, wildlife management, and access opportunities for recreation, hunting, and fishing

Sec. 10231. Bows in parks.

Sec. 10232. Wildlife management in parks.

Sec. 10233. Identifying opportunities for recreation, hunting, and fishing on Federal land.

PART V—Federal land transaction facilitation act

Sec. 10241. Federal Land Transaction Facilitation Act.

PART VI—Fish and wildlife conservation

Sec. 10251. Amendments to Pittman-Robertson Wildlife Restoration Act.

Sec. 10252. North American Wetlands Conservation Act.

Sec. 10253. National fish habitat conservation.

Sec. 10254. Gulf States Marine Fisheries Commission report on Gulf of Mexico outer Continental Shelf State boundary extension.

Sec. 10255. GAO report on Gulf of Mexico outer Continental Shelf State boundary extension.

PART VII—Miscellaneous

Sec. 10261. Respect for treaties and rights.

Sec. 10262. No priority.

Subtitle D—Water infrastructure and related matters

PART I—Fontenelle Reservoir

Sec. 10301. Authority to make entire active capacity of Fontenelle Reservoir available for use.

Sec. 10302. Savings provisions.

PART II—Bureau of Reclamation transparency

Sec. 10311. Definitions.

Sec. 10312. Asset management report enhancements for reserved works.

Sec. 10313. Asset management report enhancements for transferred works.

Sec. 10314. Offset.

PART III—Basin water management

SUBPART A—Yakima River Basin Water Enhancement

Sec. 10321. Short title.

Sec. 10322. Modification of terms, purposes, and definitions.

Sec. 10323. Yakima River Basin Water Conservation Program.

Sec. 10324. Yakima Basin water projects, operations, and authorizations.

Sec. 10325. Authorization of Phase III of Yakima River Basin Water Enhancement Project.

SUBPART B—Klamath Project water and power

Sec. 10329. Klamath Project.

PART IV—Reservoir operation improvement

Sec. 10331. Reservoir operation improvement.

PART V—Hydroelectric projects

Sec. 10341. Terror Lake Hydroelectric Project Upper Hidden Basin Diversion authorization.

Sec. 10342. Stay and Reinstatement of FERC License No. 11393 for the Mahoney Lake Hydroelectric Project.

Sec. 10343. Extension of deadline for hydroelectric project.

Sec. 10344. Extension of deadline for certain other hydroelectric projects.

Sec. 10345. Equus Beds Division extension.

Sec. 10346. Extension of time for a Federal Energy Regulatory Commission project involving Cannonsville Dam.

PART VI—Pumped storage hydropower compensation

Sec. 10351. Pumped storage hydropower compensation.

2.

Definitions

In this Act:

(1)

Department

The term Department means the Department of Energy.

(2)

Secretary

The term Secretary means the Secretary of Energy.

I

Efficiency

A

Buildings

1001.

Greater energy efficiency in building codes

(a)

Definitions

Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) is amended—

(1)

by striking paragraph (14) and inserting the following:

(14)

Model building energy code

The term model building energy code means a voluntary building energy code and standards developed and updated through a consensus process among interested persons, such as the IECC or the code used by—

(A)

the Council of American Building Officials, or its legal successor, International Code Council, Inc.;

(B)

the American Society of Heating, Refrigerating, and Air-Conditioning Engineers; or

(C)

other appropriate organizations.

; and

(2)

by adding at the end the following:

(17)

IECC

The term IECC means the International Energy Conservation Code.

(18)

Indian tribe

The term Indian tribe has the meaning given the term in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).

.

(b)

State building energy efficiency codes

Section 304 of the Energy Conservation and Production Act (42 U.S.C. 6833) is amended to read as follows:

304.

Updating State building energy efficiency codes

(a)

In general

The Secretary shall—

(1)

encourage and support the adoption of building energy codes by States, Indian tribes, and, as appropriate, by local governments that meet or exceed the model building energy codes, or achieve equivalent or greater energy savings; and

(2)

support full compliance with the State and local codes.

(b)

State and Indian tribe certification of building energy code updates

(1)

Review and updating of codes by each State and Indian tribe

(A)

In general

Not later than 2 years after the date on which a model building energy code is updated, each State or Indian tribe shall certify whether or not the State or Indian tribe, respectively, has reviewed and updated the energy provisions of the building code of the State or Indian tribe, respectively.

(B)

Demonstration

The certification shall include a demonstration of whether or not the energy savings for the code provisions that are in effect throughout the State or Indian tribal territory meet or exceed—

(i)

the energy savings of the updated model building energy code; or

(ii)

the targets established under section 307(b)(2).

(C)

No model building energy code update

If a model building energy code is not updated by a target date established under section 307(b)(2)(D), each State or Indian tribe shall, not later than 2 years after the specified date, certify whether or not the State or Indian tribe, respectively, has reviewed and updated the energy provisions of the building code of the State or Indian tribe, respectively, to meet or exceed the target in section 307(b)(2).

(2)

Validation by Secretary

Not later than 90 days after a State or Indian tribe certification under paragraph (1), the Secretary shall—

(A)

determine whether the code provisions of the State or Indian tribe, respectively, meet the criteria specified in paragraph (1); and

(B)

if the determination is positive, validate the certification.

(c)

Improvements in compliance with building energy codes

(1)

Requirement

(A)

In general

Not later than 3 years after the date of a certification under subsection (b), each State and Indian tribe shall certify whether or not the State and Indian tribe, respectively, has—

(i)

achieved full compliance under paragraph (3) with the applicable certified State and Indian tribe building energy code or with the associated model building energy code; or

(ii)

made significant progress under paragraph (4) toward achieving compliance with the applicable certified State and Indian tribe building energy code or with the associated model building energy code.

(B)

Repeat certifications

If the State or Indian tribe certifies progress toward achieving compliance, the State or Indian tribe shall repeat the certification until the State or Indian tribe certifies that the State or Indian tribe has achieved full compliance, respectively.

(2)

Measurement of compliance

A certification under paragraph (1) shall include documentation of the rate of compliance based on—

(A)

independent inspections of a random sample of the buildings covered by the code in the preceding year; or

(B)

an alternative method that yields an accurate measure of compliance.

(3)

Achievement of compliance

A State or Indian tribe shall be considered to achieve full compliance under paragraph (1) if—

(A)

at least 90 percent of building space covered by the code in the preceding year substantially meets all the requirements of the applicable code specified in paragraph (1), or achieves equivalent or greater energy savings level; or

(B)

the estimated excess energy use of buildings that did not meet the applicable code specified in paragraph (1) in the preceding year, compared to a baseline of comparable buildings that meet this code, is not more than 5 percent of the estimated energy use of all buildings covered by this code during the preceding year.

(4)

Significant progress toward achievement of compliance

A State or Indian tribe shall be considered to have made significant progress toward achieving compliance for purposes of paragraph (1) if the State or Indian tribe—

(A)

has developed and is implementing a plan for achieving compliance during the 8-year-period beginning on the date of enactment of this paragraph, including annual targets for compliance and active training and enforcement programs; and

(B)

has met the most recent target under subparagraph (A).

(5)

Validation by Secretary

Not later than 90 days after a State or Indian tribe certification under paragraph (1), the Secretary shall—

(A)

determine whether the State or Indian tribe has demonstrated meeting the criteria of this subsection, including accurate measurement of compliance; and

(B)

if the determination is positive, validate the certification.

(d)

States or Indian tribes that do not achieve compliance

(1)

Reporting

A State or Indian tribe that has not made a certification required under subsection (b) or (c) by the applicable deadline shall submit to the Secretary a report on—

(A)

the status of the State or Indian tribe with respect to meeting the requirements and submitting the certification; and

(B)

a plan for meeting the requirements and submitting the certification.

(2)

Federal support

For any State or Indian tribe for which the Secretary has not validated a certification by a deadline under subsection (b) or (c), the lack of the certification may be a consideration for Federal support authorized under this section for code adoption and compliance activities.

(3)

Local government

In any State or Indian tribe for which the Secretary has not validated a certification under subsection (b) or (c), a local government may be eligible for Federal support by meeting the certification requirements of subsections (b) and (c).

(4)

Annual reports by Secretary

(A)

In general

The Secretary shall annually submit to Congress, and publish in the Federal Register, a report on—

(i)

the status of model building energy codes;

(ii)

the status of code adoption and compliance in the States and Indian tribes;

(iii)

the 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 investment analysis), and lifetime energy use for buildings;

(ii)

resulting energy costs to individuals and businesses; and

(iii)

resulting overall annual building ownership and operating costs.

(e)

Technical assistance to States and Indian tribes

The Secretary shall provide technical assistance to States and Indian tribes to implement the goals and requirements of this section, including procedures and technical analysis for States and Indian tribes—

(1)

to improve and implement State residential and commercial building energy codes;

(2)

to demonstrate that the code provisions of the States and Indian tribes achieve equivalent or greater energy savings than the model building energy codes and targets;

(3)

to document the rate of compliance with a building energy code; and

(4)

to otherwise promote the design and construction of energy efficient buildings.

(f)

Availability of incentive funding

(1)

In general

The Secretary shall provide incentive funding to States and Indian tribes—

(A)

to implement the requirements of this section;

(B)

to improve and implement residential and commercial building energy codes, including increasing and verifying compliance with the codes and training of State, local, and tribal building code officials to implement and enforce the codes; and

(C)

to promote building energy efficiency through the use of the codes.

(2)

Additional funding

Additional funding shall be provided under this subsection for implementation of a plan to achieve and document full compliance with residential and commercial building energy codes under subsection (c)—

(A)

to a State or Indian tribe for which the Secretary has validated a certification under subsection (b) or (c); and

(B)

in a State or Indian tribe that is not eligible under subparagraph (A), to a local government that is eligible under this section.

(3)

Training

Of the amounts made available under this subsection, the State or Indian tribe may use amounts required, but not to exceed $750,000 for a State, to train State and local building code officials to implement and enforce codes described in paragraph (2).

(4)

Local governments

States may share grants under this subsection with local governments that implement and enforce the codes.

(g)

Stretch codes and advanced standards

(1)

In general

The Secretary shall provide technical and financial support for the development of stretch codes and advanced standards for residential and commercial buildings for use as—

(A)

an option for adoption as a building energy code by State, local, or tribal governments; and

(B)

guidelines for energy-efficient building design.

(2)

Targets

The stretch codes and advanced standards shall be designed—

(A)

to achieve substantial energy savings compared to the model building energy codes; and

(B)

to meet targets under section 307(b), if available, at least 3 to 6 years in advance of the target years.

(h)

Studies

The Secretary, in consultation with building science experts from the National Laboratories and institutions of higher education, designers and builders of energy-efficient residential and commercial buildings, code officials, and other stakeholders, shall undertake a study of the feasibility, impact, economics, and merit of—

(1)

code improvements that would require that buildings be designed, sited, and constructed in a manner that makes the buildings more adaptable in the future to become zero-net-energy after initial construction, as advances are achieved in energy-saving technologies;

(2)

code procedures to incorporate measured lifetimes, not just first-year energy use, in trade-offs and performance calculations; and

(3)

legislative options for increasing energy savings from building energy codes, including additional incentives for effective State and local action, and verification of compliance with and enforcement of a code other than by a State or local government.

(i)

Effect on other laws

Nothing in this section or section 307 supersedes or modifies the application of sections 321 through 346 of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.).

(j)

Authorization of appropriations

There is authorized to be appropriated to carry out this section and section 307 $200,000,000, to remain available until expended.

.

(c)

Federal building energy efficiency standards

Section 305 of the Energy Conservation and Production Act (42 U.S.C. 6834) is amended by striking voluntary building energy code each place it appears in subsections (a)(2)(B) and (b) and inserting model building energy code.

(d)

Model building energy codes

Section 307 of the Energy Conservation and Production Act (42 U.S.C. 6836) is amended to read as follows:

307.

Support for model building energy codes

(a)

In general

The Secretary shall support the updating of model building energy codes.

(b)

Targets

(1)

In general

The Secretary shall support the updating of the model building energy codes to enable the achievement of aggregate energy savings targets established under paragraph (2).

(2)

Targets

(A)

In general

The Secretary shall work with States, local governments, and Indian tribes, nationally recognized code and standards developers, and other interested parties to support the updating of model building energy codes by establishing one or more aggregate energy savings targets to achieve the purposes of this section.

(B)

Separate targets

The Secretary may establish separate targets for commercial and residential buildings.

(C)

Baselines

The baseline for updating model building energy codes shall be the 2009 IECC for residential buildings and ASHRAE Standard 90.1–2010 for commercial buildings.

(D)

Specific years

(i)

In general

Targets for specific years shall be established and revised by the Secretary through rulemaking and coordinated with nationally recognized code and standards developers at a level that—

(I)

is at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective, while accounting for the economic considerations under paragraph (4);

(II)

is higher than the preceding target; and

(III)

promotes the achievement of commercial and residential high-performance buildings through high-performance energy efficiency (within the meaning of section 401 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17061)).

(ii)

Initial targets

Not later than 1 year after the date of enactment of this clause, the Secretary shall establish initial targets under this subparagraph.

(iii)

Different target years

Subject to clause (i), prior to the applicable year, the Secretary may set a later target year for any of the model building energy codes described in subparagraph (A) if the Secretary determines that a target cannot be met.

(iv)

Small business

When establishing targets under this paragraph through rulemaking, the Secretary shall ensure compliance with the Small Business Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note; Public Law 104–121).

(3)

Appliance standards and other factors affecting building energy use

In establishing building code targets under paragraph (2), the Secretary shall develop and adjust the targets in recognition of potential savings and costs relating to—

(A)

efficiency gains made in appliances, lighting, windows, insulation, and building envelope sealing;

(B)

advancement of distributed generation and on-site renewable power generation technologies;

(C)

equipment improvements for heating, cooling, and ventilation systems;

(D)

building management systems and SmartGrid technologies to reduce energy use; and

(E)

other technologies, practices, and building systems that the Secretary considers appropriate regarding building plug load and other energy uses.

(4)

Economic considerations

In establishing and revising building code targets under paragraph (2), the Secretary shall consider the economic feasibility of achieving the proposed targets established under this section and the potential costs and savings for consumers and building owners, including a return on investment analysis.

(c)

Technical assistance to model building energy code-Setting and standard development organizations

(1)

In general

The Secretary shall, on a timely basis, provide technical assistance to model building energy code-setting and standard development organizations consistent with the goals of this section.

(2)

Assistance

The assistance shall include, as requested by the organizations, technical assistance in—

(A)

evaluating code or standards proposals or revisions;

(B)

building energy analysis and design tools;

(C)

building demonstrations;

(D)

developing definitions of energy use intensity and building types for use in model building energy codes to evaluate the efficiency impacts of the model building energy codes;

(E)

performance-based standards;

(F)

evaluating economic considerations under subsection (b)(4); and

(G)

developing model building energy codes by Indian tribes in accordance with tribal law.

(3)

Amendment proposals

The Secretary may submit timely model building energy code amendment proposals to the model building energy code-setting and standard development organizations, with supporting evidence, sufficient to enable the model building energy codes to meet the targets established under subsection (b)(2).

(4)

Analysis methodology

The Secretary shall make publicly available the entire calculation methodology (including input assumptions and data) used by the Secretary to estimate the energy savings of code or standard proposals and revisions.

(d)

Determination

(1)

Revision of model building energy codes

If the provisions of the IECC or ASHRAE Standard 90.1 regarding building energy use are revised, the Secretary shall make a preliminary determination not later than 90 days after the date of the revision, and a final determination not later than 15 months after the date of the revision, on whether or not the revision will—

(A)

improve energy efficiency in buildings compared to the existing model building energy code; and

(B)

meet the applicable targets under subsection (b)(2).

(2)

Codes or standards not meeting targets

(A)

In general

If the Secretary makes a preliminary determination under paragraph (1)(B) that a code or standard does not meet the targets established under subsection (b)(2), the Secretary may at the same time provide the model building energy code or standard developer with proposed changes that would result in a model building energy code that meets the targets and with supporting evidence, taking into consideration—

(i)

whether the modified code is technically feasible and life-cycle cost effective;

(ii)

available appliances, technologies, materials, and construction practices; and

(iii)

the economic considerations under subsection (b)(4).

(B)

Incorporation of changes

(i)

In general

On receipt of the proposed changes, the model building energy code or standard developer shall have an additional 270 days to accept or reject the proposed changes of the Secretary to the model building energy code or standard for the Secretary to make a final determination.

(ii)

Final determination

A final determination under paragraph (1) shall be on the modified model building energy code or standard.

(e)

Administration

In carrying out this section, the Secretary shall—

(1)

publish notice of targets and supporting analysis and determinations under this section in the Federal Register to provide an explanation of and the basis for such actions, including any supporting modeling, data, assumptions, protocols, and cost-benefit analysis, including return on investment; and

(2)

provide an opportunity for public comment on targets and supporting analysis and determinations under this section.

(f)

Voluntary codes and standards

Notwithstanding any other provision of this section, any model building code or standard established under section 304 shall not be binding on a State, local government, or Indian tribe as a matter of Federal law.

.

1002.

Budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units

(a)

Establishment

The Secretary of Housing and Urban Development (referred to in this section as the Secretary) shall establish a demonstration program under which, during the period beginning on the date of enactment of this Act, and ending on September 30, 2018, the Secretary may enter into budget-neutral, performance-based agreements that result in a reduction in energy or water costs with such entities as the Secretary determines to be appropriate under which the entities shall carry out projects for energy or water conservation improvements at not more than 20,000 residential units in multifamily buildings participating in—

(1)

the project-based rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), other than assistance provided under section 8(o) of that Act;

(2)

the supportive housing for the elderly program under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or

(3)

the supportive housing for persons with disabilities program under section 811(d)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(d)(2)).

(b)

Requirements

(1)

Payments contingent on savings

(A)

In general

The Secretary shall provide to an entity a payment under an agreement under this section only during applicable years for which an energy or water cost savings is achieved with respect to the applicable multifamily portfolio of properties, as determined by the Secretary, in accordance with subparagraph (B).

(B)

Payment methodology

(i)

In general

Each agreement under this section shall include a pay-for-success provision—

(I)

that will serve as a payment threshold for the term of the agreement; and

(II)

pursuant to which the Department of Housing and Urban Development shall share a percentage of the savings at a level determined by the Secretary that is sufficient to cover the administrative costs of carrying out this section.

(ii)

Limitations

A payment made by the Secretary under an agreement under this section shall—

(I)

be contingent on documented utility savings; and

(II)

not exceed the utility savings achieved by the date of the payment, and not previously paid, as a result of the improvements made under the agreement.

(C)

Third party verification

Savings payments made by the Secretary under this section shall be based on a measurement and verification protocol that includes at least—

(i)

establishment of a weather-normalized and occupancy-normalized utility consumption baseline established preretrofit;

(ii)

annual third party confirmation of actual utility consumption and cost for owner-paid utilities;

(iii)

annual third party validation of the tenant utility allowances in effect during the applicable year and vacancy rates for each unit type; and

(iv)

annual third party determination of savings to the Secretary.

(2)

Term

The term of an agreement under this section shall be not longer than 12 years.

(3)

Entity eligibility

The Secretary shall—

(A)

establish a competitive process for entering into agreements under this section; and

(B)

enter into such agreements only with entities that demonstrate significant experience relating to—

(i)

financing and operating properties receiving assistance under a program described in subsection (a);

(ii)

oversight of energy and water conservation programs, including oversight of contractors; and

(iii)

raising capital for energy and water conservation improvements from charitable organizations or private investors.

(4)

Geographical diversity

Each agreement entered into under this section shall provide for the inclusion of properties with the greatest feasible regional and State variance.

(c)

Plan and reports

(1)

Plan

Not later than 90 days after the date of enactment of this Act, the Secretary shall submit to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Natural Resources of the Senate, and the Committee on Energy and Commerce of the House of Representatives a detailed plan for the implementation of this section.

(2)

Reports

Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Secretary shall—

(A)

conduct an evaluation of the program under this section; and

(B)

submit to Congress a report describing each evaluation conducted under subparagraph (A).

(d)

Funding

For each fiscal year during which an agreement under this section is in effect, the Secretary may use to carry out this section any funds appropriated to the Secretary for the renewal of contracts under a program described in subsection (a).

1003.

Coordination of energy retrofitting assistance for schools

(a)

Definition of school

In this section, the term school means—

(1)

an elementary school or secondary school (as defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801));

(2)

an institution of higher education (as defined in section 102(a) of the Higher Education Act of 1965 (20 U.S.C. 1002(a));

(3)

a school of the defense dependents' education system under the Defense Dependents' Education Act of 1978 (20 U.S.C. 921 et seq.) or established under section 2164 of title 10, United States Code;

(4)

a school operated by the Bureau of Indian Affairs;

(5)

a tribally controlled school (as defined in section 5212 of the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2511)); and

(6)

a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b))).

(b)

Designation of lead agency

The Secretary, acting through the Office of Energy Efficiency and Renewable Energy, shall act as the lead Federal agency for coordinating and disseminating information on existing Federal programs and assistance that may be used to help initiate, develop, and finance energy efficiency, renewable energy, and energy retrofitting projects for schools.

(c)

Requirements

In carrying out coordination and outreach under subsection (b), the Secretary shall—

(1)

in consultation and coordination with the appropriate Federal agencies, carry out a review of existing programs and financing mechanisms (including revolving loan funds and loan guarantees) available in or from the Department of Agriculture, the Department of Energy, the Department of Education, the Department of the Treasury, the Internal Revenue Service, the Environmental Protection Agency, and other appropriate Federal agencies with jurisdiction over energy financing and facilitation that are currently used or may be used to help initiate, develop, and finance energy efficiency, renewable energy, and energy retrofitting projects for schools;

(2)

establish a Federal cross-departmental collaborative coordination, education, and outreach effort to streamline communication and promote available Federal opportunities and assistance described in paragraph (1) for energy efficiency, renewable energy, and energy retrofitting projects that enables States, local educational agencies, and schools—

(A)

to use existing Federal opportunities more effectively; and

(B)

to form partnerships with Governors, State energy programs, local educational, financial, and energy officials, State and local government officials, nonprofit organizations, and other appropriate entities to support the initiation of the projects;

(3)

provide technical assistance for States, local educational agencies, and schools to help develop and finance energy efficiency, renewable energy, and energy retrofitting projects—

(A)

to increase the energy efficiency of buildings or facilities;

(B)

to install systems that individually generate energy from renewable energy resources;

(C)

to establish partnerships to leverage economies of scale and additional financing mechanisms available to larger clean energy initiatives; or

(D)

to promote—

(i)

the maintenance of health, environmental quality, and safety in schools, including the ambient air quality, through energy efficiency, renewable energy, and energy retrofit projects; and

(ii)

the achievement of expected energy savings and renewable energy production through proper operations and maintenance practices;

(4)

develop and maintain a single online resource website with contact information for relevant technical assistance and support staff in the Office of Energy Efficiency and Renewable Energy for States, local educational agencies, and schools to effectively access and use Federal opportunities and assistance described in paragraph (1) to develop energy efficiency, renewable energy, and energy retrofitting projects; and

(5)

establish a process for recognition of schools that—

(A)

have successfully implemented energy efficiency, renewable energy, and energy retrofitting projects; and

(B)

are willing to serve as resources for other local educational agencies and schools to assist initiation of similar efforts.

(d)

Report

Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the implementation of this section.

1004.

Energy efficiency materials pilot program

(a)

Definitions

In this section:

(1)

Applicant

The term applicant means a nonprofit organization that applies for a grant under this section.

(2)

Energy-efficiency materials

(A)

In general

The term energy-efficiency materials means a measure (including a product, equipment, or system) that results in a reduction in use by a nonprofit organization for energy or fuel supplied from outside the nonprofit building.

(B)

Inclusions

The term energy-efficiency materials includes an item involving—

(i)

a roof or lighting system, or component of a roof or lighting system;

(ii)

a window;

(iii)

a door, including a security door; or

(iv)

a heating, ventilation, or air conditioning system or component of the system (including insulation and wiring and plumbing materials needed to serve a more efficient system); and

(v)

a renewable energy generation or heating system, including a solar, photovoltaic, wind, geothermal, or biomass (including wood pellet) system or component of the system.

(3)

Nonprofit building

(A)

In general

The term nonprofit building means a building operated and owned by a nonprofit organization.

(B)

Inclusions

The term nonprofit building includes a building described in subparagraph (A) that is—

(i)

a hospital;

(ii)

a youth center;

(iii)

a school;

(iv)

a social-welfare program facility;

(v)

a faith-based organization; and

(vi)

any other nonresidential and noncommercial structure.

(b)

Establishment

Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a pilot program to award grants for the purpose of providing nonprofit buildings with energy-efficiency materials.

(c)

Grants

(1)

In general

The Secretary may award grants under the program established under subsection (b).

(2)

Application

The Secretary may award a grant under this section if an applicant submits to the Secretary an application at such time, in such form, and containing such information as the Secretary may prescribe.

(3)

Criteria for grant

In determining whether to award a grant under this section, the Secretary shall apply performance-based criteria, which shall give priority to applications based on—

(A)

the energy savings achieved;

(B)

the cost-effectiveness of the use of energy-efficiency materials;

(C)

an effective plan for evaluation, measurement, and verification of energy savings; and

(D)

the financial need of the applicant.

(4)

Limitation on individual grant amount

Each grant awarded under this section shall not exceed $200,000.

(d)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2016 through 2020, to remain available until expended.

1005.

Utility energy service contracts

Section 546 of the National Energy Conservation Policy Act (42 U.S.C. 8256) is amended by adding at the end the following:

(f)

Utility energy service contracts

(1)

In general

Each Federal agency may use, to the maximum extent practicable, measures provided by law to meet energy efficiency and conservation mandates and laws, including through utility energy service contracts.

(2)

Contract period

The term of a utility energy service contract entered into by a Federal agency may have a contract period that extends beyond 10 years, but not to exceed 25 years.

(3)

Requirements

The conditions of a utility energy service contract entered into by a Federal agency shall include requirements for measurement, verification, and performance assurances or guarantees of the savings.

.

1006.

Use of energy and water efficiency measures in Federal buildings

(a)

Energy management requirements

Section 543(f)(4) of the National Energy Conservation Policy Act (42 U.S.C. 8253(f)(4)) is amended by striking may and inserting shall.

(b)

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:

(5)
(A)

the status of the energy savings performance contracts and utility energy service contracts of each agency;

(B)

the investment value of the contracts;

(C)

the guaranteed energy savings for the previous year as compared to the actual energy savings for the previous year;

(D)

the plan for entering into the contracts in the coming year; and

(E)

information explaining why any previously submitted plans for the contracts were not implemented.

.

(c)

Definition of energy conservation measures

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.

(d)

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:

(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 combination of energy conservation measures and water conservation measures.

.

(e)

Miscellaneous authority

Section 801(a)(2) of the National Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) 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 the sale or transfer to fund a contract under this title.

.

(f)

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.

(g)

Definition of Federal building

Section 551(6) of the National Energy Conservation Policy Act (42 U.S.C. 8259(6)) is amended by striking the semicolon at the end and inserting the term does not include a dam, reservoir, or hydropower facility owned or operated by a Federal agency;.

(h)

Definition of energy savings

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) 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:

(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.

.

1007.

Building training and assessment centers

(a)

In general

The Secretary shall provide grants to institutions of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)) and Tribal Colleges or Universities (as defined in section 316(b) of that Act (20 U.S.C. 1059c(b))) to establish building training and assessment centers—

(1)

to identify opportunities for optimizing energy efficiency and environmental performance in buildings;

(2)

to promote the application of emerging concepts and technologies in commercial and institutional buildings;

(3)

to train engineers, architects, building scientists, building energy permitting and enforcement officials, and building technicians in energy-efficient design and operation;

(4)

to assist institutions of higher education and Tribal Colleges or Universities in training building technicians;

(5)

to promote research and development for the use of alternative energy sources and distributed generation to supply heat and power for buildings, particularly energy-intensive buildings; and

(6)

to coordinate with and assist State-accredited technical training centers, community colleges, Tribal Colleges or Universities, and local offices of the National Institute of Food and Agriculture and ensure appropriate services are provided under this section to each region of the United States.

(b)

Coordination and nonduplication

(1)

In general

The Secretary shall coordinate the program with the industrial research and assessment centers program and with other Federal programs to avoid duplication of effort.

(2)

Collocation

To the maximum extent practicable, building, training, and assessment centers established under this section shall be collocated with Industrial Assessment Centers.

(c)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.

1008.

Career skills training

(a)

In general

The Secretary shall pay grants to eligible entities described in subsection (b) to pay the Federal share of associated career skills training programs under which students concurrently receive classroom instruction and on-the-job training for the purpose of obtaining an industry-related certification to install energy efficient buildings technologies, including technologies described in section 307(b)(3) of the Energy Conservation and Production Act (42 U.S.C. 6836(b)(3)).

(b)

Eligibility

To be eligible to obtain a grant under subsection (a), an entity shall be a nonprofit partnership described in section 171(e)(2)(B)(ii) of the Workforce Investment Act of 1998 (29 U.S.C. 2916(e)(2)(B)(ii)).

(c)

Federal share

The Federal share of the cost of carrying out a career skills training program described in subsection (a) shall be 50 percent.

(d)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $10,000,000, to remain available until expended.

1009.

Energy-efficient and energy-saving information technologies

Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at the end the following:

(h)

Federal Implementation Strategy for Energy-Efficient and Energy-Saving Information Technologies

(1)

Definitions

In this subsection:

(A)

Director

The term Director means the Director of the Office of Management and Budget.

(B)

Information technology

The term information technology has the meaning given the term in section 11101 of title 40, United States Code.

(2)

Development of implementation strategy

Not later than 1 year after the date of enactment of this subsection, each Federal agency shall collaborate with the Director to develop an implementation strategy (including best-practices and measurement and verification techniques) for the maintenance, purchase, and use by the Federal agency of energy-efficient and energy-saving information technologies.

(3)

Administration

In developing an implementation strategy, each Federal agency shall consider—

(A)

advanced metering infrastructure;

(B)

energy efficient data center strategies and methods of increasing asset and infrastructure utilization;

(C)

advanced power management tools;

(D)

building information modeling, including building energy management; and

(E)

secure telework and travel substitution tools.

(4)

Performance goals

(A)

In general

Not later than September 30, 2015, the Director, in consultation with the Secretary, shall establish performance goals for evaluating the efforts of Federal agencies in improving the maintenance, purchase, and use of energy-efficient and energy-saving information technology systems.

(B)

Best practices

The Chief Information Officers Council established under section 3603 of title 44, United States Code, shall supplement the performance goals established under this paragraph with recommendations on best practices for the attainment of the performance goals, to include a requirement for agencies to consider the use of—

(i)

energy savings performance contracting; and

(ii)

utility energy services contracting.

(5)

Reports

(A)

Agency reports

Each Federal agency subject to the requirements of this subsection shall include in the report of the agency under section 527 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17143) a description of the efforts and results of the agency under this subsection.

(B)

OMB Government efficiency reports and scorecards

Effective beginning not later than October 1, 2015, the Director shall include in the annual report and scorecard of the Director required under section 528 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17144) a description of the efforts and results of Federal agencies under this subsection.

(C)

Use of existing reporting structures

The Director may require Federal agencies to submit any information required to be submitted under this subsection though reporting structures in use as of the date of enactment of the Energy Policy Modernization Act of 2016.

.

1010.

Availability of funds for design updates

Section 3307 of title 40, United States Code, is amended—

(1)

by redesignating subsections (d) through (h) as subsections (e) through (i), respectively; and

(2)

by inserting after subsection (c) the following:

(d)

Availability of funds for design updates

(1)

In general

Subject to paragraph (2), for any project for which congressional approval is received under subsection (a) and for which the design has been substantially completed but construction has not begun, the Administrator of General Services may use appropriated funds to update the project design to meet applicable Federal building energy efficiency standards established under section 305 of the Energy Conservation and Production Act (42 U.S.C. 6834) and other requirements established under section 3312.

(2)

Limitation

The use of funds under paragraph (1) shall not exceed 125 percent of the estimated energy or other cost savings associated with the updates as determined by a life cycle cost analysis under section 544 of the National Energy Conservation Policy Act (42 U.S.C. 8254).

.

1011.

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)—

(A)

in paragraph (2)(D)(iv), by striking the organization and inserting an organization; and

(B)

by striking paragraph (3); and

(2)

by striking subsections (c) through (g) and inserting the following:

(c)

Stakeholder involvement

(1)

In general

The Secretary and the Administrator shall carry out subsection (b) in consultation with the information technology industry and other key stakeholders, with the goal of producing results that accurately reflect the best knowledge in the most pertinent domains.

(2)

Considerations

In carrying out consultation described in paragraph (1), the Secretary and the Administrator shall pay particular attention to organizations that—

(A)

have members with expertise in energy efficiency and in the development, operation, and functionality of data centers, information technology equipment, and software, including representatives of hardware manufacturers, data center operators, and facility managers;

(B)

obtain and address input from the National Laboratories (as that term is defined in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801)) or any institution of higher education, research institution, industry association, company, or public interest group with applicable expertise;

(C)

follow—

(i)

commonly accepted procedures for the development of specifications; and

(ii)

accredited standards development processes; or

(D)

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, 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 consultation with the Administrator, not later than 18 months after the date of enactment of the Energy Policy Modernization Act of 2016, shall make available to the public an update to the report submitted to Congress pursuant to section 1 of the Act of December 20, 2006 (Public Law 109–431; 120 Stat. 2920), entitled Report to Congress on Server and Data Center Energy Efficiency and dated August 2, 2007, 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 2007 through 2014;

(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

(1)

In general

The Secretary, in consultation with key stakeholders and the Director of the Office of Management and Budget, shall maintain a data center energy practitioner program that provides for the certification of energy practitioners qualified to evaluate the energy usage and efficiency opportunities in Federal data centers.

(2)

Evaluations

Each Federal agency shall consider having the data centers of the agency evaluated once every 4 years by energy practitioners certified pursuant to the program, whenever practicable using certified practitioners employed by the agency.

(g)

Open data initiative

(1)

In general

The Secretary, in consultation 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 the data available and accessible in a manner that encourages further data center innovation, optimization, and consolidation.

(2)

Consideration

In establishing the initiative under paragraph (1), the Secretary shall consider using the online Data Center Maturity Model.

(h)

International specifications and metrics

The Secretary, in consultation 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 in 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.

.

1012.

Weatherization Assistance Program

(a)

Reauthorization of Weatherization Assistance Program

Section 422 of the Energy Conservation and Production Act (42 U.S.C. 6872) is amended by striking appropriated— and all that follows through the period at the end and inserting appropriated $350,000,000 for each of fiscal years 2016 through 2020..

(b)

Grants for new, self-sustaining low-income, single-family and multifamily housing energy retrofit model programs to eligible multistate housing and energy nonprofit organizations

The Energy Conservation and Production Act is amended by inserting after section 414B (42 U.S.C. 6864b) the following:

414C.

Grants for new, self-sustaining low-income, single-family and multifamily housing energy retrofit model programs to eligible multistate housing and energy nonprofit organizations

(a)

Purposes

The purposes of this section are—

(1)

to expand the number of low-income, single-family and multifamily homes that receive energy efficiency retrofits;

(2)

to promote innovation and new models of retrofitting low-income homes through new Federal partnerships with covered organizations that leverage substantial donations, donated materials, volunteer labor, homeowner labor equity, and other private sector resources;

(3)

to assist the covered organizations in demonstrating, evaluating, improving, and replicating widely the model low-income energy retrofit programs of the covered organizations; and

(4)

to ensure that the covered organizations make the energy retrofit programs of the covered organizations self-sustaining by the time grant funds have been expended.

(b)

Definitions

In this section:

(1)

Covered organization

The term covered organization means an organization that—

(A)

is described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code; and

(B)

has an established record of constructing, renovating, repairing, or making energy efficient a total of not less than 250 owner-occupied, single-family or multifamily homes per year for low-income households, either directly or through affiliates, chapters, or other direct partners (using the most recent year for which data are available).

(2)

Low-income

The term low-income means an income level that is not more than 200 percent of the poverty level (as determined in accordance with criteria established by the Director of the Office of Management and Budget) applicable to a family of the size involved, except that the Secretary may establish a higher or lower level if the Secretary determines that a higher or lower level is necessary to carry out this section.

(3)

Weatherization Assistance Program for Low-Income Persons

The term Weatherization Assistance Program for Low-Income Persons means the program established under this part (including part 440 of title 10, Code of Federal Regulations, or successor regulations).

(c)

Competitive grant program

The Secretary shall make grants to covered organizations through a national competitive process for use in accordance with this section.

(d)

Award factors

In making grants under this section, the Secretary shall consider—

(1)

the number of low-income homes the applicant—

(A)

has built, renovated, repaired, or made more energy efficient as of the date of the application; and

(B)

can reasonably be projected to build, renovate, repair, or make energy efficient during the 10-year period beginning on the date of the application;

(2)

the qualifications, experience, and past performance of the applicant, including experience successfully managing and administering Federal funds;

(3)

the number and diversity of States and climates in which the applicant works as of the date of the application;

(4)

the amount of non-Federal funds, donated or discounted materials, discounted or volunteer skilled labor, volunteer unskilled labor, homeowner labor equity, and other resources the applicant will provide;

(5)

the extent to which the applicant could successfully replicate the energy retrofit program of the applicant and sustain the program after the grant funds have been expended;

(6)

regional diversity;

(7)

urban, suburban, and rural localities; and

(8)

such other factors as the Secretary determines to be appropriate.

(e)

Applications

(1)

In general

Not later than 180 days after the date of enactment of this section, the Secretary shall request proposals from covered organizations.

(2)

Administration

To be eligible to receive a grant under this section, an applicant shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.

(3)

Awards

Not later than 90 days after the date of issuance of a request for proposals, the Secretary shall award grants under this section.

(f)

Eligible uses of grant funds

A grant under this section may be used for—

(1)

energy efficiency audits, cost-effective retrofit, and related activities in different climatic regions of the United States;

(2)

energy efficiency materials and supplies;

(3)

organizational capacity—

(A)

to significantly increase the number of energy retrofits;

(B)

to replicate an energy retrofit program in other States; and

(C)

to ensure that the program is self-sustaining after the Federal grant funds are expended;

(4)

energy efficiency, audit and retrofit training, and ongoing technical assistance;

(5)

information to homeowners on proper maintenance and energy savings behaviors;

(6)

quality control and improvement;

(7)

data collection, measurement, and verification;

(8)

program monitoring, oversight, evaluation, and reporting;

(9)

management and administration (up to a maximum of 10 percent of the total grant);

(10)

labor and training activities; and

(11)

such other activities as the Secretary determines to be appropriate.

(g)

Maximum amount

(1)

In general

The amount of a grant provided under this section shall not exceed—

(A)

if the amount made available to carry out this section for a fiscal year is $225,000,000 or more, $5,000,000; and

(B)

if the amount made available to carry out this section for a fiscal year is less than $225,000,000, $1,500,000.

(2)

Technical and training assistance

The total amount of a grant provided under this section shall be reduced by the cost of any technical and training assistance provided by the Secretary that relates to the grant.

(h)

Guidelines

(1)

In general

Not later than 90 days after the date of enactment of this section, the Secretary shall issue guidelines to implement the grant program established under this section.

(2)

Administration

The guidelines—

(A)

shall not apply to the Weatherization Assistance Program for Low-Income Persons, in whole or major part; but

(B)

may rely on applicable provisions of law governing the Weatherization Assistance Program for Low-Income Persons to establish—

(i)

standards for allowable expenditures;

(ii)

a minimum savings-to-investment ratio;

(iii)

standards—

(I)

to carry out training programs;

(II)

to conduct energy audits and program activities;

(III)

to provide technical assistance;

(IV)

to monitor program activities; and

(V)

to verify energy and cost savings;

(iv)

liability insurance requirements; and

(v)

recordkeeping requirements, which shall include reporting to the Office of Weatherization and Intergovernmental Programs of the Department of Energy applicable data on each home retrofitted.

(i)

Review and evaluation

The Secretary shall review and evaluate the performance of any covered organization that receives a grant under this section (which may include an audit), as determined by the Secretary.

(j)

Compliance with State and local law

Nothing in this section or any program carried out using a grant provided under this section supersedes or otherwise affects any State or local law, to the extent that the State or local law contains a requirement that is more stringent than the applicable requirement of this section.

(k)

Annual reports

The Secretary shall submit to Congress annual reports that provide—

(1)

findings;

(2)

a description of energy and cost savings achieved and actions taken under this section; and

(3)

any recommendations for further action.

(l)

Funding

Of the amount of funds that are made available to carry out the Weatherization Assistance Program for each of fiscal years 2016 through 2020 under section 422, the Secretary shall use to carry out this section for each of fiscal years 2016 through 2020 not less than—

(1)

2 percent of the amount if the amount is less than $225,000,000;

(2)

5 percent of the amount if the amount is $225,000,000 or more but less than $260,000,000; and

(3)

10 percent of the amount if the amount is $260,000,000 or more.

.

(c)

Standards program

Section 415 of the Energy Conservation and Production Act (42 U.S.C. 6865) is amended by adding at the end the following:

(f)

Standards program

(1)

Contractor qualification

Effective beginning January 1, 2016, to be eligible to carry out weatherization using funds made available under this part, a contractor shall be selected through a competitive bidding process and be—

(A)

accredited by the Building Performance Institute;

(B)

an Energy Smart Home Performance Team accredited under the Residential Energy Services Network; or

(C)

accredited by an equivalent accreditation or program accreditation-based State certification program approved by the Secretary.

(2)

Grants for energy retrofit model programs

(A)

In general

To be eligible to receive a grant under section 414C, a covered organization (as defined in section 414C(b)) shall use a crew chief who—

(i)

is certified or accredited in accordance with paragraph (1); and

(ii)

supervises the work performed with grant funds.

(B)

Volunteer labor

A volunteer who performs work for a covered organization that receives a grant under section 414C shall not be required to be certified under this subsection if the volunteer is not directly installing or repairing mechanical equipment or other items that require skilled labor.

(C)

Training

The Secretary shall use training and technical assistance funds available to the Secretary to assist covered organizations under section 414C in providing training to obtain certification required under this subsection, including provisional or temporary certification.

(3)

Minimum efficiency standards

Effective beginning October 1, 2016, the Secretary shall ensure that—

(A)

each retrofit for which weatherization assistance is provided under this part meets minimum efficiency and quality of work standards established by the Secretary after weatherization of a dwelling unit;

(B)

at least 10 percent of the dwelling units are randomly inspected by a third party accredited under this subsection to ensure compliance with the minimum efficiency and quality of work standards established under subparagraph (A); and

(C)

the standards established under this subsection meet or exceed the industry standards for home performance work that are in effect on the date of enactment of this subsection, as determined by the Secretary.

.

1013.

Reauthorization of State energy program

Section 365(f) of the Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking $125,000,000 for each of fiscal years 2007 through 2012 and inserting $90,000,000 for each of fiscal years 2016 through 2020, of which not greater than 5 percent may be used to provide competitively awarded financial assistance.

1014.

Smart building acceleration

(a)

Definitions

In this section:

(1)

Program

The term program means the Federal Smart Building Program established under subsection (b)(1).

(2)

Smart building

The term smart building means a building, or collection of buildings, with an energy system that—

(A)

is flexible and automated;

(B)

has extensive operational monitoring and communication connectivity, allowing remote monitoring and analysis of all building functions;

(C)

takes a systems-based approach in integrating the overall building operations for control of energy generation, consumption, and storage;

(D)

communicates with utilities and other third-party commercial entities, if appropriate; and

(E)

is cybersecure.

(3)

Smart building accelerator

The term smart building accelerator means an initiative that is designed to demonstrate specific innovative policies and approaches—

(A)

with clear goals and a clear timeline; and

(B)

that, on successful demonstration, would accelerate investment in energy efficiency.

(b)

Federal smart building program

(1)

Establishment

Not later than 1 year after the date of enactment of this Act, the Secretary shall establish a program to be known as the Federal Smart Building Program

(A)

to implement smart building technology; and

(B)

to demonstrate the costs and benefits of smart buildings.

(2)

Selection

(A)

In general

The Secretary shall coordinate the selection of not fewer than 1 building from among each of several key Federal agencies, as described in paragraph (4), to compose an appropriately diverse set of smart buildings based on size, type, and geographic location.

(B)

Inclusion of commercially operated buildings

In making selections under subparagraph (A), the Secretary may include buildings that are owned by the Federal Government but are commercially operated.

(3)

Targets

Not later than 18 months after the date of enactment of this Act, the Secretary shall establish targets for the number of smart buildings to be commissioned and evaluated by key Federal agencies by 3 years and 6 years after the date of enactment of this Act.

(4)

Federal agency described

The key Federal agencies referred to in this subsection shall include buildings operated by—

(A)

the Department of the Army;

(B)

the Department of the Navy;

(C)

the Department of the Air Force;

(D)

the Department;

(E)

the Department of the Interior;

(F)

the Department of Veterans Affairs; and

(G)

the General Services Administration.

(5)

Requirement

In implementing the program, the Secretary shall leverage existing financing mechanisms including energy savings performance contracts, utility energy service contracts, and annual appropriations.

(6)

Evaluation

Using the guidelines of the Federal Energy Management Program relating to whole-building evaluation, measurement, and verification, the Secretary shall evaluate the costs and benefits of the buildings selected under paragraph (2), including an identification of—

(A)

which advanced building technologies—

(i)

are most cost-effective; and

(ii)

show the most promise for—

(I)

increasing building energy savings;

(II)

increasing service performance to building occupants;

(III)

reducing environmental impacts; and

(IV)

establishing cybersecurity; and

(B)

any other information the Secretary determines to be appropriate.

(7)

Awards

The Secretary may expand awards made under the Federal Energy Management Program and the Better Building Challenge to recognize specific agency achievements in accelerating the adoption of smart building technologies.

(c)

Survey of private sector smart buildings

(1)

Survey

The Secretary shall conduct a survey of privately owned smart buildings throughout the United States, including commercial buildings, laboratory facilities, hospitals, multifamily residential buildings, and buildings owned by nonprofit organizations and institutions of higher education.

(2)

Selection

From among the smart buildings surveyed under paragraph (1), the Secretary shall select not fewer than 1 building each from an appropriate range of building sizes, types, and geographic locations.

(3)

Evaluation

Using the guidelines of the Federal Energy Management Program relating to whole-building evaluation, measurement, and verification, the Secretary shall evaluate the costs and benefits of the buildings selected under paragraph (2), including an identification of—

(A)

which advanced building technologies and systems—

(i)

are most cost-effective; and

(ii)

show the most promise for—

(I)

increasing building energy savings;

(II)

increasing service performance to building occupants;

(III)

reducing environmental impacts; and

(IV)

establishing cybersecurity; and

(B)

any other information the Secretary determines to be appropriate.

(d)

Leveraging existing programs

(1)

Better building challenge

As part of the Better Building Challenge of the Department, the Secretary, in consultation with major private sector property owners, shall develop smart building accelerators to demonstrate innovative policies and approaches that will accelerate the transition to smart buildings in the public, institutional, and commercial buildings sectors.

(2)

Research and development

(A)

In general

The Secretary shall conduct research and development to address key barriers to the integration of advanced building technologies and to accelerate the transition to smart buildings.

(B)

Inclusion

The research and development conducted under subparagraph (A) shall include research and development on—

(i)

achieving whole-building, systems-level efficiency through smart system and component integration;

(ii)

improving physical components, such as sensors and controls, to be adaptive, anticipatory, and networked;

(iii)

reducing the cost of key components to accelerate the adoption of smart building technologies;

(iv)

data management, including the capture and analysis of data and the interoperability of the energy systems;

(v)

protecting against cybersecurity threats and addressing security vulnerabilities of building systems or equipment;

(vi)

business models, including how business models may limit the adoption of smart building technologies and how to support transactive energy;

(vii)

integration and application of combined heat and power systems and energy storage for resiliency;

(viii)

characterization of buildings and components;

(ix)

consumer and utility protections;

(x)

continuous management, including the challenges of managing multiple energy systems and optimizing systems for disparate stakeholders; and

(xi)

other areas of research and development, as determined appropriate by the Secretary.

(e)

Report

Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter until a total of 3 reports have been made, the Secretary 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—

(1)

the establishment of the Federal Smart Building Program and the evaluation of Federal smart buildings under subsection (b);

(2)

the survey and evaluation of private sector smart buildings under subsection (c); and

(3)

any recommendations of the Secretary to further accelerate the transition to smart buildings.

1015.

Repeal of fossil phase-out

Section 305(a)(3) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)) is amended by striking subparagraph (D).

1016.

Federal building energy efficiency performance standards

(a)

Definitions

Section 303 of the Energy Conservation and Production Act (42 U.S.C. 6832) (as amended by section 1001(a)) is amended—

(1)

in paragraph (6), by striking to be constructed and inserting constructed or altered; and

(2)

by adding at the end the following:

(19)

Major renovation

The term major renovation means a modification of building energy systems sufficiently extensive that the whole building can meet energy standards for new buildings, based on criteria to be established by the Secretary through notice and comment rulemaking.

.

(b)

Federal building efficiency standards

Section 305(a)(3) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)) (as amended by section 1015) is amended—

(1)

by striking (3)(A) Not later than and all that follows through subparagraph (B) and inserting the following:

(3)

Revised federal building energy efficiency performance standards

(A)

Revised federal building energy efficiency performance standards

(i)

In general

Not later than 1 year after the date of enactment of the Energy Policy Modernization Act of 2016, the Secretary shall establish, by rule, revised Federal building energy efficiency performance standards that require that—

(I)

new Federal buildings and alterations and additions to existing Federal buildings—

(aa)

meet or exceed the most recent revision of the International Energy Conservation Code (in the case of residential buildings) or ASHRAE Standard 90.1 (in the case of commercial buildings) as of the date of enactment of the Energy Policy Modernization Act of 2016; and

(bb)

meet or exceed the energy provisions of State and local building codes applicable to the building, if the codes are more stringent than the International Energy Conservation Code or ASHRAE Standard 90.1, as applicable;

(II)

unless demonstrated not to be life-cycle cost effective for new Federal buildings and Federal buildings with major renovations—

(aa)

the buildings be designed to achieve energy consumption levels that are at least 30 percent below the levels established in the version of the ASHRAE Standard or the International Energy Conservation Code, as appropriate, that is applied under subclause (I)(aa), including updates under subparagraph (B); and

(bb)

sustainable design principles are applied to the location, siting, design, and construction of all new Federal buildings and replacement Federal buildings;

(III)

if water is used to achieve energy efficiency, water conservation technologies shall be applied to the extent that the technologies are life-cycle cost effective; 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 the ASHRAE Standard or the International Energy Conservation Code, as appropriate, the Secretary shall determine whether the revised standards established under subparagraph (A) should be updated to reflect the revisions, based on the energy savings and life-cycle cost-effectiveness of the revisions.

; and

(2)

in subparagraph (C), by striking (C) In the budget request and inserting the following:

(C)

Budget request

In the budget request

.

1017.

Codification of Executive Order

Beginning in fiscal year 2016 and each fiscal year thereafter through fiscal year 2025, the head of each Federal agency shall, unless otherwise specified and where life-cycle cost-effective, promote building energy conservation, efficiency, and management by reducing, in Federal buildings of the agency, building energy intensity, as measured in British thermal units per gross square foot, by 2.5 percent each fiscal year, relative to the baseline of the building energy use of the applicable Federal buildings in fiscal year 2015 and after taking into account the progress of the Federal agency in preceding fiscal years.

1018.

Certification for green buildings

Section 305 of the Energy Conservation and Production Act (42 U.S.C. 6834) (as amended by sections 1015 and 1016(b)) is amended—

(1)

in subsection (a)(3), by adding at the end the following:

(D)

Certification for green buildings

(i)

Sustainable design principles

Sustainable design principles shall be applied to the siting, design, and construction of buildings covered by this subparagraph.

(ii)

Selection of certification systems

The Secretary, after reviewing the findings of the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)), in consultation with the Administrator of General Services, and in consultation with the Secretary of Defense relating to those facilities under the custody and control of the Department of Defense, shall determine those certification systems for green commercial and residential buildings that the Secretary determines to be the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings.

(iii)

Basis for selection

The determination of the certification systems under clause (ii) shall be based on ongoing review of the findings of the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)) and the criteria described in clause (v).

(iv)

Administration

In determining certification systems under this subparagraph, the Secretary shall—

(I)

make a separate determination for all or part of each system;

(II)

confirm that the criteria used to support the selection of building products, materials, brands, and technologies—

(aa)

are fair and neutral (meaning that the criteria are based on an objective assessment of relevant technical data);

(bb)

do not prohibit, disfavor, or discriminate against selection based on technically inadequate information to inform human or environmental risk; and

(cc)

are expressed to prefer performance measures whenever performance measures may reasonably be used in lieu of prescriptive measures; and

(III)

use environmental and health criteria that are based on risk assessment methodology that is generally accepted by the applicable scientific disciplines.

(v)

Considerations

In determining the green building certification systems under this subparagraph, the Secretary shall take into consideration—

(I)

the ability and availability of assessors and auditors to independently verify the criteria and measurement of metrics at the scale necessary to implement this subparagraph;

(II)

the ability of the applicable certification organization to collect and reflect public comment;

(III)

the ability of the standard to be developed and revised through a consensus-based process;

(IV)

an evaluation of the robustness of the criteria for a high-performance green building, which shall give credit for promoting—

(aa)

efficient and sustainable use of water, energy, and other natural resources;

(bb)

the use of renewable energy sources;

(cc)

improved indoor environmental quality through enhanced indoor air quality, thermal comfort, acoustics, day lighting, pollutant source control, and use of low-emission materials and building system controls; and

(dd)

such other criteria as the Secretary determines to be appropriate; and

(V)

national recognition within the building industry.

(vi)

Review

The Secretary, in consultation with the Administrator of General Services and the Secretary of Defense, shall conduct an ongoing review to evaluate and compare private sector green building certification systems, taking into account—

(I)

the criteria described in clause (v); and

(II)

the identification made by the Federal Director under section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)).

(vii)

Exclusions

(I)

In general

Subject to subclause (II), if a certification system fails to meet the review requirements of clause (v), the Secretary shall—

(aa)

identify the portions of the system, whether prerequisites, credits, points, or otherwise, that meet the review criteria of clause (v);

(bb)

determine the portions of the system that are suitable for use; and

(cc)

exclude all other portions of the system from identification and use.

(II)

Entire systems

The Secretary shall exclude an entire system from use if an exclusion under subclause (I)—

(aa)

impedes the integrated use of the system;

(bb)

creates disparate review criteria or unequal point access for competing materials; or

(cc)

increases agency costs of the use.

(viii)

Internal certification processes

The Secretary may by rule allow Federal agencies to develop internal certification processes, using certified professionals, in lieu of certification by certification entities identified under clause (ii).

(ix)

Privatized military housing

With respect to privatized military housing, the Secretary of Defense, after consultation with the Secretary may, through rulemaking, develop alternative certification systems and levels than the systems and levels identified under clause (ii) that achieve an equivalent result in terms of energy savings, sustainable design, and green building performance.

(x)

Water conservation technologies

In addition to any use of water conservation technologies otherwise required by this section, water conservation technologies shall be applied to the extent that the technologies are life-cycle cost-effective.

(xi)

Effective date

(I)

Determinations made after december 31, 2015

This subparagraph shall apply to any determination made by a Federal agency after December 31, 2015.

(II)

Determinations made on or before december 31, 2015

This subparagraph (as in effect on the day before the date of enactment of the Energy Policy Modernization Act of 2016) shall apply to any use of a certification system for green commercial and residential buildings by a Federal agency on or before December 31, 2015.

; and

(2)

by striking subsections (c) and (d) and inserting the following:

(c)

Periodic review

The Secretary shall—

(1)

once every 5 years, review the Federal building energy standards established under this section; and

(2)

on completion of a review under paragraph (1), if the Secretary determines that significant energy savings would result, upgrade the standards to include all new energy efficiency and renewable energy measures that are technologically feasible and economically justified.

.

1019.

High performance green federal buildings

Section 436(h) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17092(h)) is amended—

(1)

in the subsection heading, by striking System and inserting Systems;

(2)

by striking paragraph (1) and inserting the following:

(1)

In general

Based on an ongoing review, the Federal Director shall identify and shall provide to the Secretary pursuant to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), a list of those certification systems that the Director identifies as the most likely to encourage a comprehensive and environmentally sound approach to certification of green buildings.

; and

(3)

in paragraph (2)—

(A)

in the matter preceding subparagraph (A), by striking system and inserting systems;

(B)

by striking subparagraph (A) and inserting the following:

(A)

an ongoing review provided to the Secretary pursuant to section 305(a)(3)(D) of the Energy Conservation and Production Act (42 U.S.C. 6834(a)(3)(D)), which shall—

(i)

be carried out by the Federal Director to compare and evaluate standards; and

(ii)

allow any developer or administrator of a rating system or certification system to be included in the review;

;

(C)

in subparagraph (E)(v), by striking and after the semicolon at the end;

(D)

in subparagraph (F), by striking the period at the end and inserting a semicolon; and

(E)

by adding at the end the following:

(G)

a finding that, for all credits addressing grown, harvested, or mined materials, the system does not discriminate against the use of domestic products that have obtained certifications of responsible sourcing; and

(H)

a finding that the system incorporates life-cycle assessment as a credit pathway.

.

1020.

Evaluation of potentially duplicative green building programs

(a)

Definitions

In this section:

(1)

Administrative expenses

(A)

In general

The term administrative expenses has the meaning given the term by the Director of the Office of Management and Budget under section 504(b)(2) of the Energy and Water Development and Related Agencies Appropriations Act, 2010 (31 U.S.C. 1105 note; Public Law 111–85).

(B)

Inclusions

The term administrative expenses includes, with respect to an agency—

(i)

costs incurred by—

(I)

the agency; or

(II)

any grantee, subgrantee, or other recipient of funds from a grant program or other program administered by the agency; and

(ii)

expenses relating to personnel salaries and benefits, property management, travel, program management, promotion, reviews and audits, case management, and communication regarding, promotion of, and outreach for programs and program activities administered by the agency.

(2)

Applicable program

The term applicable program means any program that is—

(A)

listed in Table 9 (pages 348–350) of the report of the Government Accountability Office entitled 2012 Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue; and

(B)

administered by—

(i)

the Secretary;

(ii)

the Secretary of Agriculture;

(iii)

the Secretary of Defense;

(iv)

the Secretary of Education;

(v)

the Secretary of Health and Human Services;

(vi)

the Secretary of Housing and Urban Development;

(vii)

the Secretary of Transportation;

(viii)

the Secretary of the Treasury;

(ix)

the Administrator of the Environmental Protection Agency;

(x)

the Director of the National Institute of Standards and Technology; or

(xi)

the Administrator of the Small Business Administration.

(3)

Service

(A)

In general

Subject to subparagraph (B), the term service has the meaning given the term by the Director of the Office of Management and Budget.

(B)

Requirements

For purposes of subparagraph (A), the term service shall be limited to activities, assistance, or other aid that provides a direct benefit to a recipient, such as—

(i)

the provision of technical assistance;

(ii)

assistance for housing or tuition; or

(iii)

financial support (including grants, loans, tax credits, and tax deductions).

(b)

Report

(1)

In general

Not later than January 1, 2017, the Secretary, in consultation with the agency heads described in clauses (ii) through (xi) of subsection (a)(2)(B), shall submit to Congress and make available on the public Internet website of the Department a report that describes the applicable programs.

(2)

Requirements

In preparing the report under paragraph (1), the Secretary shall—

(A)

determine the approximate annual total administrative expenses of each applicable program attributable to green buildings;

(B)

determine the approximate annual expenditures for services for each applicable program attributable to green buildings;

(C)

describe the intended market for each applicable program attributable to green buildings, including the—

(i)

estimated the number of clients served by each applicable program; and

(ii)

beneficiaries who received services or information under the applicable program (if applicable and if data is readily available);

(D)

estimate—

(i)

the number of full-time employees who administer activities attributable to green buildings for each applicable program; and

(ii)

the number of full-time equivalents (the salary of whom is paid in part or full by the Federal Government through a grant or contract, a subaward of a grant or contract, a cooperative agreement, or another form of financial award or assistance) who assist in administering activities attributable to green buildings for the applicable program;

(E)

briefly describe the type of services each applicable program provides attributable to green buildings, such as information, grants, technical assistance, loans, tax credits, or tax deductions;

(F)

identify the type of recipient who is intended to benefit from the services or information provided under the applicable program attributable to green buildings, such as individual property owners or renters, local governments, businesses, nonprofit organizations, or State governments; and

(G)

identify whether written program goals are available for each applicable program.

(c)

Recommendations

Not later than January 1, 2017, the Secretary, in consultation with the agency heads described in clauses (ii) through (xi) of subsection (a)(2)(B), shall submit to Congress a report that includes—

(1)

a recommendation of whether any applicable program should be eliminated or consolidated, including any legislative changes that would be necessary to eliminate or consolidate applicable programs; and

(2)

methods to improve the applicable programs by establishing program goals or increasing collaboration to reduce any potential overlap or duplication, taking into account—

(A)

the 2011 report of the Government Accountability Office entitled Federal Initiatives for the Nonfederal Sector Could Benefit from More Interagency Collaboration; and

(B)

the report of the Government Accountability Office entitled 2012 Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and Enhance Revenue.

(d)

Analyses

Not later than January 1, 2017, the Secretary, in consultation with the agency heads described in clauses (ii) through (xi) of subsection (a)(2)(B), shall identify—

(1)

which applicable programs were specifically authorized by Congress; and

(2)

which applicable programs are carried out solely under the discretionary authority of the Secretary or any agency head described in clauses (ii) through (xi) of subsection (a)(2)(B).

1021.

Study and report on energy savings benefits of operational efficiency programs and services

(a)

Definition of operational efficiency programs and services

In this section, the term operational efficiency programs and services means programs and services that use information and communications technologies (including computer hardware, energy efficiency software, and power management tools) to operate buildings and equipment in the optimum manner at the optimum times.

(b)

Study and report

Not later than 1 year after the date of enactment of this Act, the Secretary shall conduct a study and issue a report that quantifies the potential energy savings of operational efficiency programs and services for commercial, institutional, industrial, and governmental entities, including Federal agencies.

(c)

Measurement and verification of energy savings

The report required under this section shall include potential methodologies or protocols for utilities, utility regulators, and Federal agencies to evaluate, measure, and verify energy savings from operational efficiency programs and services.

1022.

Use of Federal disaster relief and emergency assistance for energy-efficient products and structures

(a)

In general

Title III of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5141 et seq.) is amended by adding at the end the following:

327.

Use of assistance for energy-efficient products and structures

(a)

Definitions

In this section—

(1)

the term energy-efficient product means a product that—

(A)

meets or exceeds the requirements for designation under an Energy Star program established under section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a); or

(B)

meets or exceeds the requirements for designation as being among the highest 25 percent of equivalent products for energy efficiency under the Federal Energy Management Program; and

(2)

the term energy-efficient structure means a residential structure, a public facility, or a private nonprofit facility that meets or exceeds the requirements of Standard 90.1–2013 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers or the 2015 International Energy Conservation Code, or any successor thereto.

(b)

Use of assistance

A recipient of assistance relating to a major disaster or emergency may use the assistance to replace or repair a damaged product or structure with an energy-efficient product or energy-efficient structure.

.

(b)

Applicability

The amendment made by this section shall apply to assistance made available under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) before, on, or after the date of enactment of this Act that is expended on or after the date of enactment of this Act.

1023.

Watersense

(a)

In general

Part B of title III of the Energy Policy and Conservation Act is amended by adding after section 324A (42 U.S.C. 6294a) the following:

324B.

Watersense

(a)

Establishment of WaterSense program

(1)

In general

There is established within the Environmental Protection Agency a voluntary WaterSense program to identify and promote water-efficient products, buildings, landscapes, facilities, processes, and services that, through voluntary labeling of, or other forms of communications regarding, products, buildings, landscapes, facilities, processes, and services while meeting strict performance criteria, 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.

(2)

Inclusions

The Administrator of the Environmental Protection Agency (referred to in this section as the Administrator) shall, consistent with this section, identify water-efficient products, buildings, landscapes, facilities, processes, and services, including categories such as—

(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;

(G)

whole house humidifiers; and

(H)

water-efficient buildings or facilities.

(b)

Duties

The Administrator, coordinating as appropriate with the Secretary, shall—

(1)

establish—

(A)

a WaterSense label to be used for items meeting the certification criteria established in accordance with this section; and

(B)

the procedure, including the methods and means, and criteria by which an item may be certified to display the WaterSense label;

(2)

enhance public awareness regarding the WaterSense label through outreach, education, and other means;

(3)

preserve the integrity of the WaterSense label by—

(A)

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;

(B)

overseeing WaterSense certifications made by third parties;

(C)

as determined appropriate by the Administrator, using testing protocols, from the appropriate, applicable, and relevant consensus standards, for the purpose of determining standards compliance; and

(D)

auditing the use of the WaterSense label in the marketplace and preventing cases of misuse; and

(4)

not more often than 6 years after adoption or major revision of any WaterSense specification, review and, if appropriate, revise the specification to achieve additional water savings;

(5)

in revising a WaterSense specification—

(A)

provide reasonable notice to interested parties and the public of any changes, including effective dates, and an explanation of the changes;

(B)

solicit comments from interested parties and the public prior to any changes;

(C)

as appropriate, respond to comments submitted by interested parties and the public; and

(D)

provide an appropriate transition time prior to the applicable effective date of any 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; and

(6)

not later than December 31, 2018, consider for review and revision any WaterSense specification adopted before January 1, 2012.

(c)

Transparency

The Administrator shall, to the maximum extent practicable and not less than annually, regularly estimate and make available to the public the production and relative market shares and savings of water, energy, and capital costs of water, wastewater, and stormwater attributable to the use of WaterSense-labeled products, buildings, landscapes, facilities, processes, and services.

(d)

Distinction of authorities

In setting or maintaining specifications 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.

(e)

No warranty

A WaterSense label shall not create an express or implied warranty.

.

(b)

Conforming amendment

The table of contents for the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting after the item relating to section 324A the following:

Sec. 324B. WaterSense.

.

B

Appliances

1101.

Extended product system rebate program

(a)

Definitions

In this section:

(1)

Electric motor

The term electric motor has the meaning given the term in section 431.12 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(2)

Electronic control

The term electronic control means—

(A)

a power converter; or

(B)

a combination of a power circuit and control circuit included on 1 chassis.

(3)

Extended product system

The term extended product system means an electric motor and any required associated electronic control and driven load that—

(A)

offers variable speed or multispeed operation;

(B)

offers partial load control that reduces input energy requirements (as measured in kilowatt-hours) as compared to identified base levels set by the Secretary; and

(C)
(i)

has greater than 1 horsepower; and

(ii)

uses an extended product system technology, as determined by the Secretary.

(4)

Qualified extended product system

(A)

In general

The term qualified extended product system means an extended product system that—

(i)

includes an electric motor and an electronic control; and

(ii)

reduces the input energy (as measured in kilowatt-hours) required to operate the extended product system by not less than 5 percent, as compared to identified base levels set by the Secretary.

(B)

Inclusions

The term qualified extended product system includes commercial or industrial machinery or equipment that—

(i)
(I)

did not previously make use of the extended product system prior to the redesign described in subclause (II); and

(II)

incorporates an extended product system that has greater than 1 horsepower into redesigned machinery or equipment; and

(ii)

was previously used prior to, and was placed back into service during, calendar year 2016 or 2017.

(b)

Establishment

Not later than 180 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates for expenditures made by qualified entities for the purchase or installation of a qualified extended product system.

(c)

Qualified entities

(1)

Eligibility requirements

A qualified entity under this section shall be—

(A)

in the case of a qualified extended product system described in subsection (a)(4)(A), the purchaser of the qualified extended product that is installed; and

(B)

in the case of a qualified extended product system described in subsection (a)(4)(B), the manufacturer of the commercial or industrial machinery or equipment that incorporated the extended product system into that machinery or equipment.

(2)

Application

To be eligible to receive a rebate under this section, a qualified entity shall submit to the Secretary—

(A)

an application in such form, at such time, and containing such information as the Secretary may require; and

(B)

a certification that includes demonstrated evidence—

(i)

that the entity is a qualified entity; and

(ii)
(I)

in the case of a qualified entity described in paragraph (1)(A)—

(aa)

that the qualified entity installed the qualified extended product system during the 2 fiscal years following the date of enactment of this Act;

(bb)

that the qualified extended product system meets the requirements of subsection (a)(4)(A); and

(cc)

showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity on which the qualified extended product system was installed; or

(II)

in the case of a qualified entity described in paragraph (1)(B), demonstrated evidence—

(aa)

that the qualified extended product system meets the requirements of subsection (a)(4)(B); and

(bb)

showing the serial number, manufacturer, and model number from the nameplate of the installed motor of the qualified entity with which the extended product system is integrated.

(d)

Authorized amount of rebate

(1)

In general

The Secretary may provide to a qualified entity a rebate in an amount equal to the product obtained by multiplying—

(A)

an amount equal to the sum of the nameplate rated horsepower of—

(i)

the electric motor to which the qualified extended product system is attached; and

(ii)

the electronic control; and

(B)

$25.

(2)

Maximum aggregate amount

A qualified entity shall not be entitled to aggregate rebates under this section in excess of $25,000 per calendar year.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $5,000,000 for each of the first 2 full fiscal years following the date of enactment of this Act, to remain available until expended.

1102.

Energy efficient transformer rebate program

(a)

Definitions

In this section:

(1)

Qualified energy efficient transformer

The term qualified energy efficient transformer means a transformer that meets or exceeds the applicable energy conservation standards described in the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act).

(2)

Qualified energy inefficient transformer

The term qualified energy inefficient transformer means a transformer with an equal number of phases and capacity to a transformer described in any of the tables in subsection (b)(2) and paragraphs (1) and (2) of subsection (c) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act) that—

(A)

does not meet or exceed the applicable energy conservation standards described in paragraph (1); and

(B)
(i)

was manufactured between January 1, 1985, and December 31, 2006, for a transformer with an equal number of phases and capacity as a transformer described in the table in subsection (b)(2) of section 431.196 of title 10, Code of Federal Regulations (as in effect on the date of enactment of this Act); or

(ii)

was manufactured between January 1, 1990, and December 31, 2009, for a transformer with an equal number of phases and capacity as a transformer described in the table in paragraph (1) or (2) of subsection (c) of that section (as in effect on the date of enactment of this Act).

(3)

Qualified entity

The term qualified entity means an owner of industrial or manufacturing facilities, commercial buildings, or multifamily residential buildings, a utility, or an energy service company that fulfills the requirements of subsection (d).

(b)

Establishment

Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a program to provide rebates to qualified entities for expenditures made by the qualified entity for the replacement of a qualified energy inefficient transformer with a qualified energy efficient transformer.

(c)

Requirements

To be eligible to receive a rebate under this section, an entity shall submit to the Secretary an application in such form, at such time, and containing such information as the Secretary may require, including demonstrated evidence—

(1)

that the entity purchased a qualified energy efficient transformer;

(2)

of the core loss value of the qualified energy efficient transformer;

(3)

of the age of the qualified energy inefficient transformer being replaced;

(4)

of the core loss value of the qualified energy inefficient transformer being replaced—

(A)

as measured by a qualified professional or verified by the equipment manufacturer, as applicable; or

(B)

for transformers described in subsection (a)(2)(B)(i), as selected from a table of default values as determined by the Secretary in consultation with applicable industry; and

(5)

that the qualified energy inefficient transformer has been permanently decommissioned and scrapped.

(d)

Authorized amount of rebate

The amount of a rebate provided under this section shall be—

(1)

for a 3-phase or single-phase transformer with a capacity of not less than 10 and not greater than 2,500 kilovolt-amperes, twice the amount equal to the difference in Watts between the core loss value (as measured in accordance with paragraphs (2) and (4) of subsection (c)) of—

(A)

the qualified energy inefficient transformer; and

(B)

the qualified energy efficient transformer; or

(2)

for a transformer described in subsection (a)(2)(B)(i), the amount determined using a table of default rebate values by rated transformer output, as measured in kilovolt-amperes, as determined by the Secretary in consultation with applicable industry.

(e)

Authorization of appropriations

There is authorized to be appropriated to carry out this section $5,000,000 for each of fiscal years 2016 and 2017, to remain available until expended.

(f)

Termination of effectiveness

The authority provided by this section terminates on December 31, 2017.

1103.

Standards for certain furnaces

Section 325(f)(4) of the Energy Policy and Conservation Act (42 U.S.C. 6295(f)(4)) is amended by adding at the end the following:

(E)

Restriction on final rule for residential non-weatherized gas furnaces and mobile home furnaces

(i)

In general

Notwithstanding any other provision of this Act, the Secretary shall not prescribe a final rule amending the efficiency standards for residential non-weatherized gas furnaces or mobile home furnaces until each of the following has occurred:

(I)

The Secretary convenes a representative advisory group of interested stakeholders, including the manufacturers, distributors, and contractors of residential non-weatherized gas furnaces and mobile home furnaces, home builders, building owners, energy efficiency advocates, natural gas utilities, electric utilities, and consumer groups.

(II)

Not later than 1 year after the date of enactment of this subparagraph, the advisory group described in subclause (I) completes an analysis of a nationwide requirement of a condensing furnace efficiency standard including—

(aa)

a complete analysis of current market trends regarding the transition of sales from non-condensing furnaces to condensing furnaces;

(bb)

the projected net loss in the industry of the present value of original equipment manufactured after adoption of the standard;

(cc)

the projected consumer payback period and life cycle cost savings after adoption of the standard;

(dd)

a determination of whether the standard is economically justified, based solely on the definition of energy under section 321; and

(ee)

other common economic principles.

(III)

The advisory group described in subclause (I) reviews the analysis and determines whether a nationwide requirement of a condensing furnace efficiency standard is technically feasible and economically justified.

(IV)

The final determination of the advisory group under subclause (III) is published in the Federal Register.

(ii)

Amended standards

If the advisory group determines under clause (i)(III) that a nationwide requirement of a condensing furnace efficiency standard is not technically feasible and economically justified, the Secretary shall, not later than 180 days after the date on which the final determination of the advisory group is published in the Federal Register under clause (i)(IV), establish amended standards through the negotiated rulemaking procedure provided for under subchapter III of chapter 5 of title 5, United States Code (commonly known as the Negotiated Rulemaking Act of 1990).

.

1104.

Third-party certification under Energy Star program

Section 324A of the Energy Policy and Conservation Act (42 U.S.C. 6294a) is amended by adding at the end the following:

(e)

Third-Party Certification

(1)

In general

Subject to paragraph (2), not later than 180 days after the date of enactment of this subsection, the Administrator shall revise the certification requirements for the labeling of consumer, home, and office electronic products for program partners that have complied with all requirements of the Energy Star program for a period of at least 18 months.

(2)

Administration

In the case of a program partner described in paragraph (1), the new requirements under paragraph (1)—

(A)

shall not require third-party certification for a product to be listed; but

(B)

may require that test data and other product information be submitted to facilitate product listing and performance verification for a sample of products.

(3)

Third parties

Nothing in this subsection prevents the Administrator from using third parties in the course of the administration of the Energy Star program.

(4)

Termination

(A)

In general

Subject to subparagraph (B), an exemption from third-party certification provided to a program partner under paragraph (1) shall terminate if the program partner is found to have violated program requirements with respect to at least 2 separate models during a 2-year period.

(B)

Resumption

A termination for a program partner under subparagraph (A) shall cease if the program partner complies with all Energy Star program requirements for a period of at least 3 years.

.

1105.

Energy conservation standards for commercial refrigeration equipment

(a)

Deadline

The requirements of the final rule entitled Energy Conservation Program: Energy Conservation Standards for Commercial Refrigeration Equipment (79 Fed. Reg. 17725 (March 28, 2014)), shall take effect on January 1, 2020, for equipment covered by the final rule that—

(1)

uses natural refrigerants with a global warming potential of 10 or less that are approved for use by the Environmental Protection Agency under the Significant New Alternatives Program;

(2)

is within 1 of the following product categories:

(A)

VCT.SC.M vertical cooler with transparent door self contained medium temperature; or

(B)

HCT.SC.M horizontal cooler with transparent door self contained medium temperature; and

(3)

uses not more than 115 percent of the energy use allowed by applicable standards under Energy Star 3.0.

(b)

Future rulemakings

Nothing in this section changes the criteria to be considered during future rulemakings undertaken by the Department under title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 et seq.).

(c)

Review

Notwithstanding subsection (a), the next review required under section 342(c)(6)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6313(c)(6)(B)) shall be conducted based on an effective date of March 27, 2017.

1106.

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 periodic testing to verify compliance with energy conservation standards and Energy Star specifications established under sections 324A, 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 and the Administrator of the Environmental Protection Agency shall rely on testing conducted by 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.

(ii)

Minimum requirements

The criteria developed under clause (i) shall, at a minimum, ensure that the 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 DOE 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 or the Administrator of the Environmental Protection Agency, 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 to the extent provided under section 552(b)(4) of title 5, United States Code (commonly known as the Freedom of Information Act); and

(XI)

satisfies any additional requirements or standards that the Secretary and Administrator of the Environmental Protection Agency shall establish consistent with this subparagraph.

(iii)

Finding required for cessation of recognition

The Secretary may only cease recognition of a voluntary verification program as an approved program described in subparagraph (A) on a finding that the program is not meeting its obligations for compliance through program review criteria established under this subparagraph.

(iv)

Revisions

(I)

In general

Major revisions to voluntary verification program criteria established under this subparagraph shall only be made pursuant to a subsequent 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).

(II)

Nonmajor revisions

(aa)

In general

The Secretary may make all other nonmajor criteria revisions by initiating a direct final rule in accordance with section 553(b)(3)(B) of title 5, United States Code, on a determination published in the Federal Register that revisions to the criteria are necessary and that substantive opposition to the proposed revisions is not expected.

(bb)

Conditions for effectiveness

If the Secretary does not receive adversarial comments with respect to the determination published under item (aa) during the 30-day-period following publication of that determination in the Federal Register, the direct final rule shall have the force and effect of law.

(cc)

Withdrawal of final rule

Receipt of any adversarial comment with respect to the determination published under item (aa) shall require the Secretary to withdraw the direct final rule and publish—

(AA)

a notice of proposed rulemaking pursuant to section 553 of title 5, United States Code; or

(BB)

a notice of proposed rulemaking pursuant to section 553 of title 5, United States Code, that includes a determination that revisions to the criteria are necessary.

(C)

Administration

(i)

In general

The Secretary and the Administrator of the Environmental Protection Agency shall not require—

(I)

manufacturers to participate in a voluntary verification program described in subparagraph (A); or

(II)

participating manufacturers to provide information that has already been provided to the Secretary or the Administrator.

(ii)

List of covered products

The Secretary or the Administrator of the Environmental Protection Agency 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 voluntary verification program described in subparagraph (A);

(iii)

Periodic verification testing

(I)

In general

The Secretary—

(aa)

shall not subject products or equipment that have been verification tested under a voluntary verification program described in subparagraph (A) to periodic verification testing that verifies the accuracy of the certified performance rating of the products or equipment; but

(bb)

may test products or equipment described in subclause (I) 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.

(II)

Additional testing

The Secretary may subject products or equipment described in subclause (I) to periodic verification testing outside the restrictions of subclause (I)(bb), if agreed to during the rulemaking described in subparagraph (B)

(D)

Effect on other authority

Nothing in this paragraph limits the authority of the Secretary or the Administrator of the Environmental Protection Agency to enforce compliance with any law.

.

1107.

Application of energy conservation standards to certain external power supplies

(a)

Definition of external power supply

Section 321(36)(A) of the Energy Policy and Conservation Act (42 U.S.C. 6291(36)(A)) is amended—

(1)

by striking the subparagraph designation and all that follows through The term and inserting the following:

(A)

External power supply

(i)

In general

The term

; and

(2)

by adding at the end the following:

(ii)

Exclusion

The term external power supply does not include a power supply circuit, driver, or device that is designed exclusively to be connected to, and power—

(I)

light-emitting diodes providing illumination;

(II)

organic light-emitting diodes providing illumination; or

(III)

ceiling fans using direct current motors.

.

(b)

Standards for lighting power supply circuits

(1)

Definition

Section 340(2)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6311(2)(B)) is amended by striking clause (v) and inserting the following:

(v)

electric lights and lighting power supply circuits;

.

(2)

Energy conservation standard for certain equipment

Section 342 of the Energy Policy and Conservation Act (42 U.S.C. 6313) is amended by adding at the end the following:

(g)

Lighting power supply circuits

If the Secretary, acting pursuant to section 341(b), includes as a covered equipment solid state lighting power supply circuits, drivers, or devices described in section 321(36)(A)(ii), the Secretary may prescribe under this part, not earlier than 1 year after the date on which a test procedure has been prescribed, an energy conservation standard for such equipment.

.

(c)

Technical corrections

(1)

Section 321(6)(B) of the Energy Policy and Conservation Act (42 U.S.C. 6291(6)(B)) is amended by striking (19) and inserting (20).

(2)

Section 324 of the Energy Policy and Conservation Act (42 U.S.C. 6294) is amended by striking (19) each place it appears in each of subsections (a)(3), (b)(1)(B), (b)(3), and (b)(5) and inserting (20).

(3)

Section 325(l) of the Energy Policy and Conservation Act (42 U.S.C. 6295(l)) is amended by striking paragraph (19) each place it appears and inserting paragraph (20).

C

Manufacturing

1201.

Manufacturing energy efficiency

(a)

Purposes

The purposes of this section are—

(1)

to reform and reorient the industrial efficiency programs of the Department;

(2)

to establish a clear and consistent authority for industrial efficiency programs of the Department;

(3)

to accelerate the deployment of technologies and practices that will increase industrial energy efficiency and improve productivity;

(4)

to accelerate the development and demonstration of technologies that will assist the deployment goals of the industrial efficiency programs of the Department and increase manufacturing efficiency;

(5)

to stimulate domestic economic growth and improve industrial productivity and competitiveness; and

(6)

to strengthen partnerships between Federal and State governmental agencies and the private and academic sectors.

(b)

Future of Industry program

(1)

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.

(2)

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—

(A)

in paragraph (2)—

(i)

by redesignating subparagraph (E) as subparagraph (F); and

(ii)

by inserting before subparagraph (F) (as so redesignated) the following:

(E)

water and wastewater treatment facilities, including systems that treat municipal, industrial, and agricultural waste; and

;

(B)

by redesignating paragraphs (3) through (5) as paragraphs (4) through (6), respectively; and

(C)

by inserting after paragraph (2) the following:

(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)

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—

(A)

by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and indenting appropriately;

(B)

by striking The Secretary and inserting the following:

(1)

In general

The Secretary

;

(C)

in subparagraph (A) (as redesignated by subparagraph (A)), 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

(D)

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 Program 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;

(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;

(E)

identify opportunities for reducing greenhouse gas emissions; and

(F)

promote sustainable manufacturing practices for small- and medium-sized manufacturers.

(3)

Outreach

The Secretary shall provide funding for—

(A)

outreach activities by the industrial research and assessment centers to inform small- and medium-sized manufacturers of the information, technologies, and services available; and

(B)

coordination activities by each industrial research and assessment center to leverage efforts with—

(i)

Federal and State efforts;

(ii)

the efforts of utilities and energy service providers;

(iii)

the efforts of regional energy efficiency organizations; and

(iv)

the efforts of other industrial research and assessment centers.

(4)

Workforce training

(A)

In general

The Secretary shall pay the Federal share of associated internship programs under which students work with or for industries, manufacturers, and energy service providers to implement the recommendations of industrial research and assessment centers.

(B)

Federal share

The Federal share of the cost of carrying out internship programs described in subparagraph (A) shall be 50 percent.

(5)

Small business loans

The Administrator of the Small Business Administration shall, to the maximum extent practicable, expedite consideration of applications from eligible small business concerns for loans under the Small Business Act (15 U.S.C. 631 et seq.) to implement recommendations of industrial research and assessment centers established under paragraph (1).

(6)

Advanced manufacturing steering committee

The Secretary shall establish an advisory steering committee to provide recommendations to the Secretary on planning and implementation of the Advanced Manufacturing Office of the Department of Energy.

(7)

Expansion of technical assistance

The Secretary shall expand the institution of higher education-based industrial research and assessment centers, working across Federal agencies as necessary—

(A)

to provide comparable assessment services to water and wastewater treatment facilities, including systems that treat municipal, industrial, and agricultural waste; and

(B)

to equip the directors of the centers with the training and tools necessary to provide technical assistance on energy savings to the water and wastewater treatment facilities.

.

(c)

Sustainable manufacturing initiative

(1)

In general

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

376.

Sustainable manufacturing initiative

(a)

In general

As part of the Office of Energy Efficiency and Renewable Energy, the Secretary, on the request of a manufacturer, shall conduct on-site technical assessments to identify opportunities for—

(1)

maximizing the energy efficiency of industrial processes and cross-cutting systems;

(2)

preventing pollution and minimizing waste;

(3)

improving efficient use of water in manufacturing processes;

(4)

conserving natural resources; and

(5)

achieving such other goals as the Secretary determines to be appropriate.

(b)

Coordination

The Secretary shall carry out the initiative in coordination with the private sector and appropriate agencies, including the National Institute of Standards and Technology, to accelerate adoption of new and existing technologies and processes that improve energy efficiency.

(c)

Research and development program for sustainable manufacturing and industrial technologies and processes

As part of the industrial efficiency programs of the Department of Energy, the Secretary shall carry out a joint industry-government partnership program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies and processes that maximize the energy efficiency of industrial plants, reduce pollution, and conserve natural resources.

.

(2)

Table of contents

The table of contents of the Energy Policy and Conservation Act (42 U.S.C. prec. 6201) is amended by adding at the end of the items relating to part E of title III the following:

Sec. 376. Sustainable manufacturing initiative.

.

1202.

Leveraging existing Federal agency programs to assist small and medium manufacturers

(a)

Definitions

In this section and section 1203:

(1)

Energy management system

The term “energy management system” means a business management process based on standards of the American National Standards Institute that enables an organization to follow a systematic approach in achieving continual improvement of energy performance, including energy efficiency, security, use, and consumption.

(2)

Industrial assessment center

The term “industrial assessment center” means a center located at an institution of higher education that—

(A)

receives funding from the Department;

(B)

provides an in-depth assessment of small- and medium-size manufacturer plant sites to evaluate the facilities, services, and manufacturing operations of the plant site; and

(C)

identifies opportunities for potential savings for small- and medium-size manufacturer plant sites from energy efficiency improvements, waste minimization, pollution prevention, and productivity improvement.

(3)

National laboratory

The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(4)

Small and medium manufacturers

The term “small and medium manufacturers” means manufacturing firms—

(A)

classified in the North American Industry Classification System as any of sectors 31 through 33;

(B)

with gross annual sales of less than $100,000,000;

(C)

with fewer than 500 employees at the plant site; and

(D)

with annual energy bills totaling more than $100,000 and less than $2,500,000.

(5)

Smart manufacturing

The term smart manufacturing means advanced technologies in information, automation, monitoring, computation, sensing, modeling, and networking that—

(A)

digitally—

(i)

simulate manufacturing production lines;

(ii)

operate computer-controlled manufacturing equipment;

(iii)

monitor and communicate production line status; and

(iv)

manage and optimize energy productivity and cost throughout production;

(B)

model, simulate, and optimize the energy efficiency of a factory building;

(C)

monitor and optimize building energy performance;

(D)

model, simulate, and optimize the design of energy efficient and sustainable products, including the use of digital prototyping and additive manufacturing to enhance product design;

(E)

connect manufactured products in networks to monitor and optimize the performance of the networks, including automated network operations; and

(F)

digitally connect the supply chain network.

(b)

Expansion of Technical Assistance Programs

The Secretary shall expand the scope of technologies covered by the Industrial Assessment Centers of the Department—

(1)

to include smart manufacturing technologies and practices; and

(2)

to equip the directors of the Industrial Assessment Centers with the training and tools necessary to provide technical assistance in smart manufacturing technologies and practices, including energy management systems, to manufacturers.

(c)

Funding

The Secretary shall use unobligated funds of the Department to carry out this section.

1203.

Leveraging smart manufacturing infrastructure at National Laboratories

(a)

Study

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary shall conduct a study on ways in which the Department can increase access to existing high-performance computing resources in the National Laboratories, particularly for small and medium manufacturers.

(2)

Inclusions

In identifying ways to increase access to National Laboratories under paragraph (1), the Secretary shall—

(A)

focus on increasing access to the computing facilities of the National Laboratories; and

(B)

ensure that—

(i)

the information from the manufacturer is protected; and

(ii)

the security of the National Laboratory facility is maintained.

(3)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report describing the results of the study.

(b)

Actions for Increased Access

The Secretary shall facilitate access to the National Laboratories studied under subsection (a) for small and medium manufacturers so that small and medium manufacturers can fully use the high-performance computing resources of the National Laboratories to enhance the manufacturing competitiveness of the United States.

D

Vehicles

1301.

Short title

This subtitle may be cited as the Vehicle Innovation Act of 2016.

1302.

Objectives

The objectives of this subtitle are—

(1)

to establish a consistent and consolidated authority for the vehicle technology program at the Department;

(2)

to develop United States technologies and practices that—

(A)

improve the fuel efficiency and emissions of all vehicles produced in the United States; and

(B)

reduce vehicle reliance on petroleum-based fuels;

(3)

to support domestic research, development, engineering, demonstration, and commercial application and manufacturing of advanced vehicles, engines, and components;

(4)

to enable vehicles to move larger volumes of goods and more passengers with less energy and emissions;

(5)

to develop cost-effective advanced technologies for wide-scale utilization throughout the passenger, commercial, government, and transit vehicle sectors;

(6)

to allow for greater consumer choice of vehicle technologies and fuels;

(7)

shorten technology development and integration cycles in the vehicle industry;

(8)

to ensure a proper balance and diversity of Federal investment in vehicle technologies; and

(9)

to strengthen partnerships between Federal and State governmental agencies and the private and academic sectors.

1303.

Coordination and nonduplication

The Secretary shall ensure, to the maximum extent practicable, that the activities authorized by this subtitle do not duplicate those of other programs within the Department or other relevant research agencies.

1304.

Authorization of appropriations

There are authorized to be appropriated to the Secretary for research, development, engineering, demonstration, and commercial application of vehicles and related technologies in the United States, including activities authorized under this subtitle—

(1)

for fiscal year 2016, $313,567,000;

(2)

for fiscal year 2017, $326,109,000;

(3)

for fiscal year 2018, $339,154,000;

(4)

for fiscal year 2019, $352,720,000; and

(5)

for fiscal year 2020, $366,829,000.

1305.

Reporting

(a)

Technologies developed

Not later than 18 months after the date of enactment of this Act and annually thereafter through 2020, the Secretary shall submit to Congress a report regarding the technologies developed as a result of the activities authorized by this subtitle, with a particular emphasis on whether the technologies were successfully adopted for commercial applications, and if so, whether products relying on those technologies are manufactured in the United States.

(b)

Additional matters

At the end of each fiscal year through 2020, the Secretary shall submit to the relevant Congressional committees of jurisdiction an annual report describing activities undertaken in the previous year under this Act, active industry participants, the status of public private partnerships, progress of the program in meeting goals and timelines, and a strategic plan for funding of activities across agencies.

I

Vehicle Research and Development

1306.

Program

(a)

Activities

The Secretary shall conduct a program of basic and applied research, development, engineering, demonstration, and commercial application activities on materials, technologies, and processes with the potential to substantially reduce or eliminate petroleum use and the emissions of the Nation’s passenger and commercial vehicles, including activities in the areas of—

(1)

electrification of vehicle systems;

(2)

batteries, ultracapacitors, and other energy storage devices;

(3)

power electronics;

(4)

vehicle, component, and subsystem manufacturing technologies and processes;

(5)

engine efficiency and combustion optimization;

(6)

waste heat recovery;

(7)

transmission and drivetrains;

(8)

hydrogen vehicle technologies, including fuel cells and internal combustion engines, and hydrogen infrastructure, including hydrogen energy storage to enable renewables and provide hydrogen for fuel and power;

(9)

natural gas vehicle technologies;

(10)

aerodynamics, rolling resistance (including tires and wheel assemblies), and accessory power loads of vehicles and associated equipment;

(11)

vehicle weight reduction, including lightweighting materials and the development of manufacturing processes to fabricate, assemble, and use dissimilar materials;

(12)

friction and wear reduction;

(13)

engine and component durability;

(14)

innovative propulsion systems;

(15)

advanced boosting systems;

(16)

hydraulic hybrid technologies;

(17)

engine compatibility with and optimization for a variety of transportation fuels including natural gas and other liquid and gaseous fuels;

(18)

predictive engineering, modeling, and simulation of vehicle and transportation systems;

(19)

refueling and charging infrastructure for alternative fueled and electric or plug-in electric hybrid vehicles, including the unique challenges facing rural areas;

(20)

gaseous fuels storage systems and system integration and optimization;

(21)

sensing, communications, and actuation technologies for vehicle, electrical grid, and infrastructure;

(22)

efficient use, substitution, and recycling of potentially critical materials in vehicles, including rare earth elements and precious metals, at risk of supply disruption;

(23)

aftertreatment technologies;

(24)

thermal management of battery systems;

(25)

retrofitting advanced vehicle technologies to existing vehicles;

(26)

development of common standards, specifications, and architectures for both transportation and stationary battery applications;

(27)

advanced internal combustion engines;

(28)

mild hybrid;

(29)

engine down speeding;

(30)

vehicle-to-vehicle, vehicle-to-pedestrian, and vehicle-to-infrastructure technologies; and

(31)

other research areas as determined by the Secretary.

(b)

Transformational technology

The Secretary shall ensure that the Department continues to support research, development, engineering, demonstration, and commercial application activities and maintains competency in mid- to long-term transformational vehicle technologies with potential to achieve reductions in emissions, including activities in the areas of—

(1)

hydrogen vehicle technologies, including fuel cells, hydrogen storage, infrastructure, and activities in hydrogen technology validation and safety codes and standards;

(2)

multiple battery chemistries and novel energy storage devices, including nonchemical batteries and electromechanical storage technologies such as hydraulics, flywheels, and compressed air storage;

(3)

communication and connectivity among vehicles, infrastructure, and the electrical grid; and

(4)

other innovative technologies research and development, as determined by the Secretary.

(c)

Industry participation

To the maximum extent practicable, activities under this Act shall be carried out in partnership or collaboration with automotive manufacturers, heavy commercial, vocational, and transit vehicle manufacturers, qualified plug-in electric vehicle manufacturers, compressed natural gas vehicle manufacturers, vehicle and engine equipment and component manufacturers, manufacturing equipment manufacturers, advanced vehicle service providers, fuel producers and energy suppliers, electric utilities, universities, national laboratories, and independent research laboratories. In carrying out this Act the Secretary shall—

(1)

determine whether a wide range of companies that manufacture or assemble vehicles or components in the United States are represented in ongoing public private partnership activities, including firms that have not traditionally participated in federally sponsored research and development activities, and where possible, partner with such firms that conduct significant and relevant research and development activities in the United States;

(2)

leverage the capabilities and resources of, and formalize partnerships with, industry-led stakeholder organizations, nonprofit organizations, industry consortia, and trade associations with expertise in the research and development of, and education and outreach activities in, advanced automotive and commercial vehicle technologies;

(3)

develop more effective processes for transferring research findings and technologies to industry;

(4)

support public-private partnerships, dedicated to overcoming barriers in commercial application of transformational vehicle technologies, that utilize such industry-led technology development facilities of entities with demonstrated expertise in successfully designing and engineering pre-commercial generations of such transformational technology; and

(5)

promote efforts to ensure that technology research, development, engineering, and commercial application activities funded under this Act are carried out in the United States.

(d)

Interagency and intraagency coordination

To the maximum extent practicable, the Secretary shall coordinate research, development, demonstration, and commercial application activities among—

(1)

relevant programs within the Department, including—

(A)

the Office of Energy Efficiency and Renewable Energy;

(B)

the Office of Science;

(C)

the Office of Electricity Delivery and Energy Reliability;

(D)

the Office of Fossil Energy;

(E)

the Advanced Research Projects Agency—Energy; and

(F)

other offices as determined by the Secretary; and

(2)

relevant technology research and development programs within other Federal agencies, as determined by the Secretary.

(e)

Federal demonstration of technologies

The Secretary shall make information available to procurement programs of Federal agencies regarding the potential to demonstrate technologies resulting from activities funded through programs under this Act.

(f)

Intergovernmental coordination

The Secretary shall seek opportunities to leverage resources and support initiatives of State and local governments in developing and promoting advanced vehicle technologies, manufacturing, and infrastructure.

(g)

Criteria

When awarding grants under this program, the Secretary shall give priority to those technologies (either individually or as part of a system) that—

(1)

provide the greatest aggregate fuel savings based on the reasonable projected sales volumes of the technology; and

(2)

provide the greatest increase in United States employment.

(h)

Secondary use applications

(1)

In general

The Secretary shall carry out a research, development, and demonstration program that—

(A)

builds on any work carried out under section 915 of the Energy Policy Act of 2005 (42 U.S.C. 16195);

(B)

identifies possible uses of a vehicle battery after the useful life of the battery in a vehicle has been exhausted;

(C)

conducts long-term testing to verify performance and degradation predictions and lifetime valuations for secondary uses;

(D)

evaluates innovative approaches to recycling materials from plug-in electric drive vehicles and the batteries used in plug-in electric drive vehicles;

(E)
(i)

assesses the potential for markets for uses described in subparagraph (B) to develop; and

(ii)

identifies any barriers to the development of those markets; and

(F)

identifies the potential uses of a vehicle battery—

(i)

with the most promise for market development; and

(ii)

for which market development would be aided by a demonstration project.

(2)

Report

Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress an initial report on the findings of the program described in paragraph (1), including recommendations for stationary energy storage and other potential applications for batteries used in plug-in electric drive vehicles.

(3)

Secondary use demonstration

(A)

In general

Based on the results of the program described in paragraph (1), the Secretary shall develop guidelines for projects that demonstrate the secondary uses and innovative recycling of vehicle batteries.

(B)

Publication of guidelines

Not later than 18 months after the date of enactment of this Act, the Secretary shall—

(i)

publish the guidelines described in subparagraph (A); and

(ii)

solicit applications for funding for demonstration projects.

(C)

Pilot demonstration program

Not later than 21 months after the date of enactment of this Act, the Secretary shall select proposals for grant funding under this section, based on an assessment of which proposals are mostly likely to contribute to the development of a secondary market for batteries.

1307.

Manufacturing

The Secretary shall carry out a research, development, engineering, demonstration, and commercial application program of advanced vehicle manufacturing technologies and practices, including innovative processes—

(1)

to increase the production rate and decrease the cost of advanced battery and fuel cell manufacturing;

(2)

to vary the capability of individual manufacturing facilities to accommodate different battery chemistries and configurations;

(3)

to reduce waste streams, emissions, and energy intensity of vehicle, engine, advanced battery and component manufacturing processes;

(4)

to recycle and remanufacture used batteries and other vehicle components for reuse in vehicles or stationary applications;

(5)

to develop manufacturing processes to effectively fabricate, assemble, and produce cost-effective lightweight materials such as advanced aluminum and other metal alloys, polymeric composites, and carbon fiber for use in vehicles;

(6)

to produce lightweight high pressure storage systems for gaseous fuels;

(7)

to design and manufacture purpose-built hydrogen fuel cell vehicles and components;

(8)

to improve the calendar life and cycle life of advanced batteries; and

(9)

to produce permanent magnets for advanced vehicles.

II

Medium- and Heavy-Duty Commercial and Transit Vehicles

1308.

Program

The Secretary, in partnership with relevant research and development programs in other Federal agencies, and a range of appropriate industry stakeholders, shall carry out a program of cooperative research, development, demonstration, and commercial application activities on advanced technologies for medium- to heavy-duty commercial, vocational, recreational, and transit vehicles, including activities in the areas of—

(1)

engine efficiency and combustion research;

(2)

onboard storage technologies for compressed and liquefied natural gas;

(3)

development and integration of engine technologies designed for natural gas operation of a variety of vehicle platforms;

(4)

waste heat recovery and conversion;

(5)

improved aerodynamics and tire rolling resistance;

(6)

energy and space-efficient emissions control systems;

(7)

mild hybrid, heavy hybrid, hybrid hydraulic, plug-in hybrid, and electric platforms, and energy storage technologies;

(8)

drivetrain optimization;

(9)

friction and wear reduction;

(10)

engine idle and parasitic energy loss reduction;

(11)

electrification of accessory loads;

(12)

onboard sensing and communications technologies;

(13)

advanced lightweighting materials and vehicle designs;

(14)

increasing load capacity per vehicle;

(15)

thermal management of battery systems;

(16)

recharging infrastructure;

(17)

compressed natural gas infrastructure;

(18)

advanced internal combustion engines;

(19)

complete vehicle and power pack modeling, simulation, and testing;

(20)

hydrogen vehicle technologies, including fuel cells and internal combustion engines, and hydrogen infrastructure, including hydrogen energy storage to enable renewables and provide hydrogen for fuel and power;

(21)

retrofitting advanced technologies onto existing truck fleets;

(22)

advanced boosting systems;

(23)

engine down speeding; and

(24)

integration of these and other advanced systems onto a single truck and trailer platform.

1309.

Class 8 truck and trailer systems demonstration

(a)

In general

The Secretary shall conduct a competitive grant program to demonstrate the integration of multiple advanced technologies on Class 8 truck and trailer platforms, including a combination of technologies listed in section 1308.

(b)

Applicant teams

Applicant teams may be comprised of truck and trailer manufacturers, engine and component manufacturers, fleet customers, university researchers, and other applicants as appropriate for the development and demonstration of integrated Class 8 truck and trailer systems.

1310.

Technology testing and metrics

The Secretary, in coordination with the partners of the interagency research program described in section 1308—

(1)

shall develop standard testing procedures and technologies for evaluating the performance of advanced heavy vehicle technologies under a range of representative duty cycles and operating conditions, including for heavy hybrid propulsion systems;

(2)

shall evaluate heavy vehicle performance using work performance-based metrics other than those based on miles per gallon, including those based on units of volume and weight transported for freight applications, and appropriate metrics based on the work performed by nonroad systems; and

(3)

may construct heavy duty truck and bus testing facilities.

1311.

Nonroad systems pilot program

The Secretary shall undertake a pilot program of research, development, demonstration, and commercial applications of technologies to improve total machine or system efficiency for nonroad mobile equipment including agricultural, construction, air, and sea port equipment, and shall seek opportunities to transfer relevant research findings and technologies between the nonroad and on-highway equipment and vehicle sectors.

III

Administration

1312.

Repeal of existing authorities

(a)

In general

Sections 706, 711, 712, and 933 of the Energy Policy Act of 2005 (42 U.S.C. 16051, 16061, 16062, 16233) are repealed.

(b)

Energy efficiency

Section 911 of the Energy Policy Act of 2005 (42 U.S.C. 16191) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1)(A), by striking vehicles, buildings, and inserting buildings; and

(B)

in paragraph (2)—

(i)

by striking subparagraph (A); and

(ii)

by redesignating subparagraphs (B) through (E) as subparagraphs (A) through (D), respectively; and

(2)

in subsection (c)—

(A)

by striking paragraph (3);

(B)

by redesignating paragraph (4) as paragraph (3); and

(C)

in paragraph (3) (as so redesignated), by striking (a)(2)(D) and inserting (a)(2)(C).

1313.

Reauthorization of diesel emissions reduction program

Section 797(a) of the Energy Policy Act of 2005 (42 U.S.C. 16137(a)) is amended by striking 2016 and inserting 2021.

1314.

Gaseous fuel dual fueled automobiles

Section 32905 of title 49, United States Code, is amended by striking subsection (d) and inserting the following:

(d)

Gaseous fuel dual fueled automobiles

(1)

Model years 1993 through 2016

For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model years 1993 through 2016, the Administrator shall measure the fuel economy for that model by dividing 1.0 by the sum of—

(A)

.5 divided by the fuel economy measured under section 32904(c) of this title when operating the model on gasoline or diesel fuel; and

(B)

.5 divided by the fuel economy measured under subsection (c) of this section when operating the model on gaseous fuel.

(2)

Subsequent model years

For any model of gaseous fuel dual fueled automobile manufactured by a manufacturer in model year 2017 or any subsequent model year, the Administrator shall calculate fuel economy in accordance with section 600.510–12 (c)(2)(vii) of title 40, Code of Federal Regulations (as in effect on the date of enactment of this paragraph) if the vehicle qualifies under section 32901(c).

.

E

Short title

1401.

Short title

This title may be cited as the Portman-Shaheen Energy Efficiency Improvement Act of 2016.

F

Housing

1501.

Definitions

In this subtitle, the following definitions shall apply:

(1)

Covered loan

The term covered loan means a loan secured by a home that is insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.).

(2)

Homeowner

The term homeowner means the mortgagor under a covered loan.

(3)

Mortgagee

The term mortgagee means an original lender under a covered loan or the holder of a covered loan at the time at which that mortgage transaction is consummated.

1502.

Enhanced energy efficiency underwriting criteria

(a)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall, in consultation with the advisory group established in section 1505(c), develop and issue guidelines for the Federal Housing Administration to implement enhanced loan eligibility requirements, for use when testing the ability of a loan applicant to repay a covered loan, that account for the expected energy cost savings for a loan applicant at a subject property, in the manner set forth in subsections (b) and (c).

(b)

Requirements to account for energy cost savings

(1)

In general

The enhanced loan eligibility requirements under subsection (a) shall require that, for all covered loans for which an energy efficiency report is voluntarily provided to the mortgagee by the homeowner, the Federal Housing Administration and the mortgagee shall take into consideration the estimated energy cost savings expected for the owner of the subject property in determining whether the loan applicant has sufficient income to service the mortgage debt plus other regular expenses.

(2)

Use as offset

To the extent that the Federal Housing Administration uses a test such as a debt-to-income test that includes certain regular expenses, such as hazard insurance and property taxes—

(A)

the expected energy cost savings shall be included as an offset to these expenses; and

(B)

the Federal Housing Administration may not use the offset described in subparagraph (A) to qualify a loan applicant for insurance under title II of the National Housing Act (12 U.S.C. 1707 et seq.) with respect to a loan that would not otherwise meet the requirements for such insurance.

(3)

Types of energy costs

Energy costs to be assessed under this subsection shall include the cost of electricity, natural gas, oil, and any other fuel regularly used to supply energy to the subject property.

(c)

Determination of estimated energy cost savings

(1)

In general

The guidelines to be issued under subsection (a) shall include instructions for the Federal Housing Administration to calculate estimated energy cost savings using—

(A)

the energy efficiency report;

(B)

an estimate of baseline average energy costs; and

(C)

additional sources of information as determined by the Secretary of Housing and Urban Development.

(2)

Report requirements

For the purposes of paragraph (1), an energy efficiency report shall—

(A)

estimate the expected energy cost savings specific to the subject property, based on specific information about the property;

(B)

be prepared in accordance with the guidelines to be issued under subsection (a); and

(C)

be prepared—

(i)

in accordance with the Residential Energy Service Network’s Home Energy Rating System (commonly known as HERS) by an individual certified by the Residential Energy Service Network, unless the Secretary of Housing and Urban Development finds that the use of HERS does not further the purposes of this subtitle;

(ii)

in accordance with the Alaska Housing Finance Corporation energy rating system by an individual certified by the Alaska Housing Finance Corporation as an authorized Energy Rater; or

(iii)

by other methods approved by the Secretary of Housing and Urban Development, in consultation with the Secretary and the advisory group established in section 1505(c), for use under this subtitle, which shall include a third-party quality assurance procedure.

(3)

Use by appraiser

If an energy efficiency report is used under subsection (b), the energy efficiency report shall be provided to the appraiser to estimate the energy efficiency of the subject property and for potential adjustments for energy efficiency.

(d)

Pricing of loans

(1)

In general

The Federal Housing Administration may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of the loans.

(2)

Imposition of certain material costs, impediments, or penalties

In the absence of a publicly disclosed analysis that demonstrates significant additional default risk or prepayment risk associated with the loans, the Federal Housing Administration shall not impose material costs, impediments, or penalties on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this section.

(e)

Limitations

(1)

In general

The Federal Housing Administration may price covered loans originated under the enhanced loan eligibility requirements required under this section in accordance with the estimated risk of those loans.

(2)

Prohibited actions

The Federal Housing Administration shall not—

(A)

modify existing underwriting criteria or adopt new underwriting criteria that intentionally negate or reduce the impact of the requirements or resulting benefits that are set forth or otherwise derived from the enhanced loan eligibility requirements required under this section; or

(B)

impose greater buy back requirements, credit overlays, or insurance requirements, including private mortgage insurance, on covered loans merely because the loan uses an energy efficiency report or the enhanced loan eligibility requirements required under this section.

(f)

Applicability and implementation date

Not later than 3 years after the date of enactment of this Act, and before December 31, 2019, the enhanced loan eligibility requirements required under this section shall be implemented by the Federal Housing Administration to—

(1)

apply to any covered loan for the sale, or refinancing of any loan for the sale, of any home;

(2)

be available on any residential real property (including individual units of condominiums and cooperatives) that qualifies for a covered loan; and

(3)

provide prospective mortgagees with sufficient guidance and applicable tools to implement the required underwriting methods.

1503.

Enhanced energy efficiency underwriting valuation guidelines

(a)

In general

Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall—

(1)

in consultation with the Federal Financial Institutions Examination Council and the advisory group established in section 1505(c), develop and issue guidelines for the Federal Housing Administration to determine the maximum permitted loan amount based on the value of the property for all covered loans made on properties with an energy efficiency report that meets the requirements of section 1502(c)(2); and

(2)

in consultation with the Secretary, issue guidelines for the Federal Housing Administration to determine the estimated energy savings under subsection (c) for properties with an energy efficiency report.

(b)

Requirements

The enhanced energy efficiency underwriting valuation guidelines required under subsection (a) shall include—

(1)

a requirement that if an energy efficiency report that meets the requirements of section 1502(c)(2) is voluntarily provided to the mortgagee, such report shall be used by the mortgagee or the Federal Housing Administration to determine the estimated energy savings of the subject property; and

(2)

a requirement that the estimated energy savings of the subject property be added to the appraised value of the subject property by a mortgagee or the Federal Housing Administration for the purpose of determining the loan-to-value ratio of the subject property, unless the appraisal includes the value of the overall energy efficiency of the subject property, using methods to be established under the guidelines issued under subsection (a).

(c)

Determination of estimated energy savings

(1)

Amount of energy savings

The amount of estimated energy savings shall be determined by calculating the difference between the estimated energy costs for the average comparable houses, as determined in guidelines to be issued under subsection (a), and the estimated energy costs for the subject property based upon the energy efficiency report.

(2)

Duration of energy savings

The duration of the estimated energy savings shall be based upon the estimated life of the applicable equipment, consistent with the rating system used to produce the energy efficiency report.

(3)

Present value of energy savings

The present value of the future savings shall be discounted using the average interest rate on conventional 30-year mortgages, in the manner directed by guidelines issued under subsection (a).

(d)

Ensuring consideration of energy efficient features

Section 1110 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is amended—

(1)

in paragraph (2), by striking ; and at the end;

(2)

in paragraph (3), by striking the period at the end and inserting ; and; and

(3)

by inserting after paragraph (3) the following:

(4)

that State certified and licensed appraisers have timely access, whenever practicable, to information from the property owner and the lender that may be relevant in developing an opinion of value regarding the energy-saving improvements or features of a property, such as—

(A)

labels or ratings of buildings;

(B)

installed appliances, measures, systems or technologies;

(C)

blueprints;

(D)

construction costs;

(E)

financial or other incentives regarding energy-efficient components and systems installed in a property;

(F)

utility bills;

(G)

energy consumption and bench­marking data; and

(H)

third-party verifications or representations of energy and water efficiency performance of a property, observing all financial privacy requirements adhered to by certified and licensed appraisers, including section 501 of the Gramm-Leach-Bliley Act (15 U.S.C. 6801).

Unless a property owner consents to a lender, an appraiser, in carrying out the requirements of paragraph (4), shall not have access to the commercial or financial information of the owner that is privileged or confidential.

.

(e)

Transactions requiring state certified appraisers

Section 1113 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is amended—

(1)

in paragraph (1), by inserting before the semicolon the following: , or any real property on which the appraiser makes adjustments using an energy efficiency report; and

(2)

in paragraph (2), by inserting after before the period at the end the following: , or an appraisal on which the appraiser makes adjustments using an energy efficiency report.

(f)

Protections

(1)

Authority to impose limitations

The guidelines to be issued under subsection (a) shall include such limitations and conditions as determined by the Secretary of Housing and Urban Development to be necessary to protect against meaningful under or over valuation of energy cost savings or duplicative counting of energy efficiency features or energy cost savings in the valuation of any subject property that is used to determine a loan amount.

(2)

Additional authority

At the end of the 7-year period following the implementation of enhanced eligibility and underwriting valuation requirements under this subtitle, the Secretary of Housing and Urban Development may modify or apply additional exceptions to the approach described in subsection (b), where the Secretary of Housing and Urban Development finds that the unadjusted appraisal will reflect an accurate market value of the efficiency of the subject property or that a modified approach will better reflect an accurate market value.

(g)

Applicability and implementation date

Not later than 3 years after the date of enactment of this Act, and before December 31, 2019, the Federal Housing Administration shall implement the guidelines required under this section, which shall—

(1)

apply to any covered loan for the sale, or refinancing of any loan for the sale, of any home; and

(2)

be available on any residential real property, including individual units of condominiums and cooperatives, that qualifies for a covered loan.

1504.

Monitoring

Not later than 1 year after the date on which the enhanced eligibility and underwriting valuation requirements are implemented under this subtitle, and every year thereafter, the Federal Housing Administration shall issue and make available to the public a report that—

(1)

enumerates the number of covered loans of the Federal Housing Administration for which there was an energy efficiency report, and that used energy efficiency appraisal guidelines and enhanced loan eligibility requirements;

(2)

includes the default rates and rates of foreclosures for each category of loans; and

(3)

describes the risk premium, if any, that the Federal Housing Administration has priced into covered loans for which there was an energy efficiency report.

1505.

Rulemaking

(a)

In general

The Secretary of Housing and Urban Development shall prescribe regulations to carry out this subtitle, in consultation with the Secretary and the advisory group established in subsection (c), which may contain such classifications, differentiations, or other provisions, and may provide for such proper implementation and appropriate treatment of different types of transactions, as the Secretary of Housing and Urban Development determines are necessary or proper to effectuate the purposes of this subtitle, to prevent circumvention or evasion thereof, or to facilitate compliance therewith.

(b)

Rule of construction

Nothing in this subtitle shall be construed to authorize the Secretary of Housing and Urban Development to require any homeowner or other party to provide energy efficiency reports, energy efficiency labels, or other disclosures to the Federal Housing Administration or to a mortgagee.

(c)

Advisory group

To assist in carrying out this subtitle, the Secretary of Housing and Urban Development shall establish an advisory group, consisting of individuals representing the interests of—

(1)

mortgage lenders;

(2)

appraisers;

(3)

energy raters and residential energy consumption experts;

(4)

energy efficiency organizations;

(5)

real estate agents;

(6)

home builders and remodelers;

(7)

consumer advocates;

(8)

State energy officials; and

(9)

others as determined by the Secretary of Housing and Urban Development.

1506.

Additional study

(a)

In general

Not later than 18 months after the date of enactment of this Act, the Secretary of Housing and Urban Development shall reconvene the advisory group established in section 1505(c), in addition to water and locational efficiency experts, to advise the Secretary of Housing and Urban Development on the implementation of the enhanced energy efficiency underwriting criteria established in sections 1502 and 1503.

(b)

Recommendations

The advisory group established in section 1505(c) shall provide recommendations to the Secretary of Housing and Urban Development on any revisions or additions to the enhanced energy efficiency underwriting criteria deemed necessary by the group, which may include alternate methods to better account for home energy costs and additional factors to account for substantial and regular costs of homeownership such as location-based transportation costs and water costs. The Secretary of Housing and Urban Development shall forward any legislative recommendations from the advisory group to Congress for its consideration.

II

Infrastructure

A

Cybersecurity

2001.

Cybersecurity threats

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the following:

224.

Cybersecurity threats

(a)

Definitions

In this section:

(1)

Bulk-power system

The term bulk-power system has the meaning given the term in section 215.

(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 those matters.

(3)

Critical electric infrastructure information

(A)

In general

The term critical electric infrastructure information means information related to critical electric infrastructure, or proposed critical electric 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).

(B)

Inclusions

The term critical electric infrastructure information includes information that qualifies as critical energy infrastructure information under regulations promulgated by the Commission.

(4)

Cybersecurity threat

The term cybersecurity threat means the imminent danger of an act that severely disrupts, attempts to severely disrupt, or poses a significant risk of severely disrupting the operation of programmable electronic devices or communications networks (including hardware, software, and data) essential to the reliable operation of the bulk-power system.

(5)

Electric Reliability Organization

The term Electric Reliability Organization has the meaning given the term in section 215.

(6)

Regional entity

The term regional entity has the meaning given the term in section 215.

(7)

Secretary

The term Secretary means the Secretary of Energy.

(b)

Emergency authority of Secretary

(1)

In general

If the President notifies the Secretary that the President has made a determination that immediate action is necessary to protect the bulk-power system from a cybersecurity threat, the Secretary may require, by order and with or without notice, any entity that is registered with the Electric Reliability Organization as an owner, operator, or user of the bulk-power system to take such actions as the Secretary determines will best avert or mitigate the cybersecurity threat.

(2)

Written explanation

As soon as practicable after notifying the Secretary under paragraph (1), the President shall—

(A)

provide to the Secretary, in writing, a record of the determination and an explanation of the reasons for the determination; and

(B)

promptly notify, in writing, 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, the directive or determination.

(3)

Coordination with Canada and Mexico

In exercising the authority pursuant to this subsection, the Secretary is encouraged to consult and coordinate with the appropriate officials in Canada and Mexico responsible for the protection of cybersecurity of the interconnected North American electricity grid.

(4)

Consultation

Before exercising authority pursuant to this subsection, to the maximum extent practicable, taking into consideration the nature of an identified cybersecurity threat and the urgency of need for action, the Secretary shall consult regarding implementation of actions that will effectively address the cybersecurity threat with—

(A)

any entities potentially subject to the cybersecurity threat that own, control, or operate bulk-power system facilities;

(B)

the Electric Reliability Organization;

(C)

the Electricity Sub-sector Coordinating Council (as established by the Electric Reliability Organization); and

(D)

officials of other Federal departments and agencies, as appropriate.

(5)

Cost recovery

(A)

In general

The Commission shall adopt regulations that permit entities subject to an order under paragraph (1) to seek recovery of prudently incurred costs required to implement actions ordered by the Secretary under this subsection.

(B)

Requirements

Any rate or charge approved under regulations adopted pursuant to this paragraph—

(i)

shall be just and reasonable; and

(ii)

shall not be unduly discriminatory or preferential.

(c)

Duration of emergency orders

An order issued by the Secretary pursuant to subsection (b) shall remain in effect for not longer than the 30-day period beginning on the effective date of the order, unless, during that 30 day-period, the Secretary—

(1)

provides to interested persons an opportunity to submit written data, recommendations, and arguments; and

(2)

affirms, amends, or repeals the order, subject to the condition that an amended order shall not exceed a total duration of 90 days.

(d)

Protection and sharing of critical electric infrastructure

(1)

Protection of critical electric infrastructure

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 State, political subdivision, or tribal authority pursuant to any State, political subdivision, or tribal law requiring disclosure of information or records.

(2)

Designation and sharing of critical electric infrastructure information

Not later than 1 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—

(A)

to designate critical electric infrastructure information;

(B)

to prohibit the unauthorized disclosure of critical electric infrastructure information; and

(C)

to 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;

(3)

Considerations

In promulgating regulations and issuing orders under paragraph (2), the Commission shall take into consideration the role of State commissions in—

(A)

reviewing the prudence and cost of investments;

(B)

determining the rates and terms of conditions for electric services; and

(C)

ensuring the safety and reliability of the bulk-power system and distribution facilities within the respective jurisdictions of the State commissions.

(4)

No required sharing of information

Nothing in this section requires a person or entity in possession of critical electric infrastructure information to share the information with Federal, State, political subdivision, or tribal authorities, or any other person or entity.

(5)

Disclosure of noncritical electric infrastructure information

In carrying out this section, 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.

.

2002.

Enhanced grid security

(a)

Definitions

In this section:

(1)

Electric utility

The term electric utility has the meaning given the term in section 3 of the Federal Power Act (16 U.S.C. 796).

(2)

ES–ISAC

The term ES–ISAC means the Electricity Sector Information Sharing and Analysis Center.

(3)

National Laboratory

The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).

(4)

Sector-Specific Agency

The term Sector-Specific Agency has the meaning given the term in the Presidential policy directive entitled Critical Infrastructure Security and Resilience, numbered 21, and dated February 12, 2013.

(b)

Sector-Specific Agency for cybersecurity for the energy sector

(1)

In general

The Department shall be the lead Sector-Specific Agency for cybersecurity for the energy sector.

(2)

Duties

As the designated Sector-Specific Agency for cybersecurity, the duties of the Department shall include—

(A)

coordinating with the Department of Homeland Security and other relevant Federal departments and agencies;

(B)

collaborating with—

(i)

critical infrastructure owners and operators; and

(ii)

as appropriate—

(I)

independent regulatory agencies; and

(II)

State, local, tribal and territorial entities;

(C)

serving as a day-to-day Federal interface for the dynamic prioritization and coordination of sector-specific activities;

(D)

carrying out incident management responsibilities consistent with applicable law (including regulations) and other appropriate policies or directives;

(E)

providing, supporting, or facilitating technical assistance and consultations for the energy sector to identify vulnerabilities and help mitigate incidents, as appropriate; and

(F)

supporting the reporting requirements of the Department of Homeland Security under applicable law by providing, on an annual basis, sector-specific critical infrastructure information.

(c)

Cybersecurity for the energy sector research, development, and demonstration program

(1)

In general

The Secretary, in consultation with appropriate Federal agencies, the energy sector, the States, and other stakeholders, shall carry out a program—

(A)

to develop advanced cybersecurity applications and technologies for the energy sector—

(i)

to identify and mitigate vulnerabilities, including—

(I)

dependencies on other critical infrastructure; and

(II)

impacts from weather and fuel supply; and

(ii)

to advance the security of field devices and third-party control systems, including—

(I)

systems for generation, transmission, distribution, end use, and market functions;

(II)

specific electric grid elements including advanced metering, demand response, distributed generation, and electricity storage;

(III)

forensic analysis of infected systems; and

(IV)

secure communications;

(B)

to leverage electric grid architecture as a means to assess risks to the energy sector, including by implementing an all-hazards approach to communications infrastructure, control systems architecture, and power systems architecture;

(C)

to perform pilot demonstration projects with the energy sector to gain experience with new technologies; and

(D)

to develop workforce development curricula for energy sector-related cybersecurity.

(2)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $65,000,000 for each of fiscal years 2017 through 2025.

(d)

Energy sector component testing for cyberresilience program

(1)

In general

The Secretary shall carry out a program—

(A)

to establish a cybertesting and mitigation program to identify vulnerabilities of energy sector supply chain products to known threats;

(B)

to oversee third-party cybertesting; and

(C)

to develop procurement guidelines for energy sector supply chain components.

(2)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $15,000,000 for each of fiscal years 2017 through 2025.

(e)

Energy sector operational support for cyberresilience program

(1)

In general

The Secretary may carry out a program—

(A)

to enhance and periodically test—

(i)

the emergency response capabilities of the Department; and

(ii)

the coordination of the Department with other agencies, the National Laboratories, and private industry;

(B)

to expand cooperation of the Department with the intelligence communities for energy sector-related threat collection and analysis;

(C)

to enhance the tools of the Department and ES–ISAC for monitoring the status of the energy sector;

(D)

to expand industry participation in ES–ISAC; and

(E)

to provide technical assistance to small electric utilities for purposes of assessing cybermaturity level.

(2)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2017 through 2025.

(f)

Modeling and assessing energy infrastructure risk

(1)

In general

The Secretary shall develop an advanced energy security program to secure energy networks, including electric, natural gas, and oil exploration, transmission, and delivery.

(2)

Security and resiliency objective

The objective of the program developed under paragraph (1) is to increase the functional preservation of the electric grid operations or natural gas and oil operations in the face of natural and human-made threats and hazards, including electric magnetic pulse and geomagnetic disturbances.

(3)

Eligible activities

In carrying out the program developed under paragraph (1), the Secretary may—

(A)

develop capabilities to identify vulnerabilities and critical components that pose major risks to grid security if destroyed or impaired;

(B)

provide modeling at the national level to predict impacts from natural or human-made events;

(C)

develop a maturity model for physical security and cybersecurity;

(D)

conduct exercises and assessments to identify and mitigate vulnerabilities to the electric grid, including providing mitigation recommendations;

(E)

conduct research hardening solutions for critical components of the electric grid;

(F)

conduct research mitigation and recovery solutions for critical components of the electric grid; and

(G)

provide technical assistance to States and other entities for standards and risk analysis.

(4)

Authorization of appropriations

There is authorized to be appropriated to carry out this subsection $10,000,000 for each of fiscal years 2017 through 2025.

(g)

Leveraging existing programs

The programs established under this section shall be carried out consistent with—

(1)

the report of the Department entitled Roadmap to Achieve Energy Delivery Systems Cybersecurity and dated 2011;

(2)

existing programs of the Department; and

(3)

any associated strategic framework that links together academic and National Laboratory researchers, electric utilities, manufacturers, and any other relevant private industry organizations, including the Electricity Sub-sector Coordinating Council.

(h)

Study

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation, shall conduct a study to explore alternative management structures and funding mechanisms to expand industry membership and participation in ES–ISAC.

(2)

Report

The Secretary shall submit to the appropriate committees of Congress a report describing the results of the study conducted under paragraph (1).

B

Strategic Petroleum Reserve

2101.

Strategic Petroleum Reserve modernization

(a)

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).

(b)

Spr petroleum account

Section 167(b) of the Energy Policy and Conservation Act (42 U.S.C. 6247(b)) is amended to read as follows:

(b)

Obligation of funds for the acquisition, transportation, and injection of petroleum products into SPR and for other purposes

(1)

Purposes

Amounts in the Account may be obligated by the Secretary of Energy for—

(A)

the acquisition, transportation, and injection of petroleum products into the Reserve;

(B)

test sales of petroleum products from the Reserve;

(C)

the drawdown, sale, and delivery of petroleum products from the Reserve;

(D)

the construction, maintenance, repair, and replacement of storage facilities and related facilities; and

(E)

carrying out non-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.

(2)

Amounts

Amounts in the Account may be obligated by the Secretary of Energy for purposes of paragraph (1), in the case of any fiscal year—

(A)

subject to section 660 of the Department of Energy Organization Act (42 U.S.C. 7270), in such aggregate amounts as may be appropriated in advance in appropriations Acts; and

(B)

notwithstanding section 660 of the Department of Energy Organization Act (42 U.S.C. 7270), in an aggregate amount equal to the aggregate amount of the receipts to the United States from the sale of petroleum products in any drawdown and a distribution of the Reserve under section 161, including—

(i)

a drawdown and distribution carried out under subsection (g) of that section; or

(ii)

from the sale of petroleum products under section 160(f).

(3)

Availability of funds

Funds available to the Secretary of Energy for obligation under this subsection may remain available without fiscal year limitation.

.

(c)

Definition of related facility

Section 152(8) of the Energy Policy and Conservation Act (42 U.S.C. 6232(8)) is amended by inserting terminals, after reservoirs,.

2102.

Strategic petroleum reserve drawdown and sale

Section 403 of the Bipartisan Budget Act of 2015 (Public Law 114–74; 129 Stat. 589) is amended by adding at the end the following:

(d)

Increase; Limitation

(1)

Increase

The Secretary of Energy may increase the drawdown and sales under paragraphs (1) through (8) of subsection (a) as the Secretary of Energy determines to be appropriate to maximize the financial return to United States taxpayers.

(2)

Limitation

The Secretary of Energy shall not drawdown or conduct sales of crude oil under this section after the date on which a total of $5,050,000,000 has been deposited in the general fund of the Treasury from sales authorized under this section.

.

C

Trade

2201.

Action on applications to export liquefied natural gas

(a)

Decision deadline

For proposals that must also obtain authorization from the Federal Energy Regulatory Commission or the Maritime Administration to site, construct, expand, or operate liquefied natural gas export facilities, the Secretary shall issue a final decision on any application for the authorization to export natural gas under section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)) not later than 45 days after the later of—

(1)

the conclusion of the review to site, construct, expand, or operate the liquefied natural gas export 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 (42 U.S.C. 4321 et seq.) shall be considered concluded when the lead agency—

(1)

for a project requiring an Environmental Impact Statement, publishes a Final Environmental Impact Statement;

(2)

for a project for which an Environmental Assessment has been prepared, publishes a Finding of No Significant Impact; or

(3)

determines that an application is eligible for a categorical exclusion pursuant to National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) implementing regulations.

(c)

Judicial review

(1)

In general

Except for review in the Supreme Court, the United States Court of Appeals for the District of Columbia Circuit or the circuit in which the liquefied natural gas export facility will be located pursuant to an application described in subsection (a) shall have original and exclusive jurisdiction over any civil action for the review of—

(A)

an order issued by the Secretary with respect to such application; or

(B)

the failure of the Secretary to issue a final decision on such application.

(2)

Order

If the Court in a civil action described in paragraph (1) finds that the Secretary has failed to issue a final decision on the application as required under subsection (a), the Court shall order the Secretary to issue the final decision not later than 30 days after the order of the Court.

(3)

Expedited consideration

The Court shall—

(A)

set any civil action brought under this subsection for expedited consideration; and

(B)

set the matter on the docket as soon as practicable after the filing date of the initial pleading.

(4)

Transfers

In the case of an application described in subsection (a) for which a petition for review has been filed—

(A)

upon motion by an applicant, the matter shall be transferred to the United States Court of Appeals for the District of Columbia Circuit or the circuit in which a liquefied natural gas export facility will be located pursuant to an application described in section 3(a) of the Natural Gas Act (15 U.S.C. 717b(a)); and

(B)

the provisions of this section shall apply.

2202.

Public disclosure of liquefied natural gas 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

(1)

In general

In the case of any authorization to export liquefied natural gas, the Secretary of Energy shall require the applicant to report to the Secretary of Energy the names of the 1 or more countries of destination to which the exported liquefied natural gas is delivered.

(2)

Timing

The applicant shall file the report required under paragraph (1) not later than—

(A)

in the case of the first export, the last day of the month following the month of the first export; and

(B)

in the case of subsequent exports, the date that is 30 days after the last day of the applicable month concerning the activity of the previous month.

(3)

Disclosure

The Secretary of Energy shall publish the information reported under this subsection on the website of the Department of Energy and otherwise make the information available to the public.

.

2203.

Energy data collaboration

(a)

In general

The Administrator of the Energy Information Administration (referred to in this section as the Administrator) shall collaborate with the appropriate officials in Canada and Mexico, as determined by the Administrator, to improve—

(1)

the quality and transparency of energy data in North America through reconciliation of data on energy trade flows among the United States, Canada, and Mexico;

(2)

the extension of energy mapping capabilities in the United States, Canada, and Mexico; and

(3)

the development of common energy data terminology among the United States, Canada, and Mexico.

(b)

Periodic updates

The Administrator shall periodically submit to the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives an update on—

(1)

the extent to which energy data is being shared under subsection (a); and

(2)

whether forward-looking projections for regional energy flows are improving in accuracy as a result of the energy data sharing under that subsection.

D

Electricity and energy storage

2301.

Grid storage program

(a)

In general

The Secretary shall conduct a program of research, development, and demonstration of electric grid energy storage that addresses the principal challenges identified in the 2013 Department of Energy Strategic Plan for Grid Energy Storage.

(b)

Areas of focus

The program under this section shall focus on—

(1)

materials, electric thermal, electromechanical, and electrochemical systems research;

(2)

power conversion technologies research;

(3)

developing—

(A)

empirical and science-based industry standards to compare the storage capacity, cycle length and capabilities, and reliability of different types of electricity storage; and

(B)

validation and testing techniques;

(4)

other fundamental and applied research critical to widespread deployment of electricity storage;

(5)

device development that builds on results from research described in paragraphs (1), (2), and (4), including combinations of power electronics, advanced optimizing controls, and energy storage as a general purpose element of the electric grid;

(6)

grid-scale testing and analysis of storage devices, including test-beds and field trials;

(7)

cost-benefit analyses that inform capital expenditure planning for regulators and owners and operators of components of the electric grid;

(8)

electricity storage device safety and reliability, including potential failure modes, mitigation measures, and operational guidelines;

(9)

standards for storage device performance, control interface, grid interconnection, and interoperability; and

(10)

maintaining a public database of energy storage projects, policies, codes, standards, and regulations.

(c)

Assistance to States

The Secretary may provide technical and financial assistance to States, Indian tribes, or units of local government to participate in or use research, development, or deployment of technology developed under this section.

(d)

Authorization of Appropriations

There is authorized to be appropriated to the Secretary to carry out this section $50,000,000 for each of fiscal years 2017 through 2026.

(e)

No effect on other provisions of law

Nothing in this subtitle or an amendment made by this subtitle authorizes regulatory actions that would duplicate or conflict with regulatory requirements, mandatory standards, or related processes under section 215 of the Federal Power Act (16 U.S.C. 824o).

(f)

Use of funds

To the maximum extent practicable, in carrying out this section, the Secretary shall ensure that the use of funds to carry out this section is coordinated among different offices within the Grid Modernization Initiative of the Department and other programs conducting energy storage research.

2302.

Electric system grid architecture, scenario development, and modeling

(a)

Grid architecture and scenario development

(1)

In general

Subject to paragraph (2), the Secretary shall establish and facilitate a collaborative process to develop model grid architecture and a set of future scenarios for the electric system to examine the impacts of different combinations of resources (including different quantities of distributed energy resources and large-scale, central generation) on the electric grid.

(2)

Market structure

The grid architecture and scenarios developed under paragraph (1) shall account for differences in market structure, including an examination of the potential for stranded costs in each type of market structure.

(3)

Findings

Based on the findings of grid architecture developed under paragraph (1), the Secretary shall—

(A)

determine whether any additional standards are necessary to ensure the interoperability of grid systems and associated communications networks; and

(B)

if the Secretary makes a determination that additional standards are necessary under subparagraph (A), make recommendations for additional standards, including, as may be appropriate, to the Electric Reliability Organization under section 215 of the Federal Power Act (16 U.S.C. 824o).

(b)

Modeling

Subject to subsection (c), the Secretary shall—

(1)

conduct modeling based on the scenarios developed under subsection (a); and

(2)

analyze and evaluate the technical and financial impacts of the models to assist States, utilities, and other stakeholders in—

(A)

enhancing strategic planning efforts;

(B)

avoiding stranded costs; and

(C)

maximizing the cost-effectiveness of future grid-related investments.

(c)

Input

The Secretary shall develop the scenarios and conduct the modeling and analysis under subsections (a) and (b) with participation or input, as appropriate, from—

(1)

the National Laboratories;

(2)

States;

(3)

State regulatory authorities;

(4)

transmission organizations;

(5)

representatives of the electric industry;

(6)

academic institutions;

(7)

independent research institutes; and

(8)

other entities.

2303.

Hybrid micro-grid systems for isolated and resilient communities

(a)

Definitions

In this section:

(1)

Hybrid micro-grid system

The term hybrid micro-grid system means a stand-alone electrical system that—

(A)

is comprised of conventional generation and at least 1 alternative energy resource; and

(B)

may use grid-scale energy storage.

(2)

Isolated community

The term isolated community means a community that is powered by a stand-alone electric generation and distribution system without the economic and reliability benefits of connection to a regional electric grid.

(3)

Micro-grid system

The term micro-grid system means a standalone electrical system that uses grid-scale energy storage.

(4)

Strategy

The term strategy means the strategy developed pursuant to subsection (b)(2)(B).

(b)

Program

(1)

Establishment

The Secretary shall establish a program to promote the development of—

(A)

hybrid micro-grid systems for isolated communities; and

(B)

micro-grid systems to increase the resilience of critical infrastructure.

(2)

Phases

The program established under paragraph (1) shall be divided into the following phases:

(A)

Phase I, which shall consist of the development of a feasibility assessment for—

(i)

hybrid micro-grid systems in isolated communities; and

(ii)

micro-grid systems to enhance the resilience of critical infrastructure.

(B)

Phase II, which shall consist of the development of an implementation strategy, in accordance with paragraph (3), to promote the development of hybrid micro-grid systems for isolated communities, particularly for those communities exposed to extreme weather conditions and high energy costs, including electricity, space heating and cooling, and transportation.

(C)

Phase III, which shall be carried out in parallel with Phase II and consist of the development of an implementation strategy to promote the development of micro-grid systems that increase the resilience of critical infrastructure.

(D)

Phase IV, which shall consist of cost-shared demonstration projects, based upon the strategies developed under subparagraph (B) that include the development of physical and cybersecurity plans to take appropriate measures to protect and secure the electric grid.

(E)

Phase V, which shall establish a benefits analysis plan to help inform regulators, policymakers, and industry stakeholders about the affordability, environmental and resilience benefits associated with Phases II, III and IV.

(3)

Requirements for strategy

In developing the strategy under paragraph (2)(B), the Secretary shall consider—

(A)

establishing future targets for the economic displacement of conventional generation using hybrid micro-grid systems, including displacement of conventional generation used for electric power generation, heating and cooling, and transportation;

(B)

the potential for renewable resources, including wind, solar, and hydropower, to be integrated into a hybrid micro-grid system;

(C)

opportunities for improving the efficiency of existing hybrid micro-grid systems;

(D)

the capacity of the local workforce to operate, maintain, and repair a hybrid micro-grid system;

(E)

opportunities to develop the capacity of the local workforce to operate, maintain, and repair a hybrid micro-grid system;

(F)

leveraging existing capacity within local or regional research organizations, such as organizations based at institutions of higher education, to support development of hybrid micro-grid systems, including by testing novel components and systems prior to field deployment;

(G)

the need for basic infrastructure to develop, deploy, and sustain a hybrid micro-grid system;

(H)

input of traditional knowledge from local leaders of isolated communities in the development of a hybrid micro-grid system;

(I)

the impact of hybrid micro-grid systems on defense, homeland security, economic development, and environmental interests;

(J)

opportunities to leverage existing interagency coordination efforts and recommendations for new interagency coordination efforts to minimize unnecessary overhead, mobilization, and other project costs; and

(K)

any other criteria the Secretary determines appropriate.

(c)

Collaboration

The program established under subsection (b)(1) shall be carried out in collaboration with relevant stakeholders, including, as appropriate—

(1)

States;

(2)

Indian tribes;

(3)

regional entities and regulators;

(4)

units of local government;

(5)

institutions of higher education; and

(6)

private sector entities.

(d)

Report

Not later than 180 days after the date of enactment of this Act, and annually thereafter, the Secretary 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 efforts to implement the program established under subsection (b)(1) and the status of the strategy developed under subsection (b)(2)(B).

2304.

Voluntary model pathways

(a)

Establishment of voluntary model pathways

(1)

Establishment

Not later than 90 days after the date of enactment of this Act, the Secretary shall initiate the development of voluntary model pathways for modernizing the electric grid through a collaborative, public-private effort that—

(A)

produces illustrative policy pathways that can be adapted for State and regional applications by regulators and policymakers;

(B)

facilitates the modernization of the electric grid to achieve the objectives described in paragraph (2);

(C)

ensures a reliable, resilient, affordable, safe, and secure electric system; and

(D)

acknowledges and provides for different priorities, electric systems, and rate structures across States and regions.

(2)

Objectives

The pathways established under paragraph (1) shall facilitate achievement of the following objectives:

(A)

Near real-time situational awareness of the electric system.

(B)

Data visualization.

(C)

Advanced monitoring and control of the advanced electric grid.

(D)

Enhanced certainty for private investment in the electric system.

(E)

Increased innovation.

(F)

Greater consumer empowerment.

(G)

Enhanced grid resilience, reliability, and robustness.

(H)

Improved—

(i)

integration of distributed energy resources;

(ii)

interoperability of the electric system; and

(iii)

predictive modeling and capacity forecasting.

(3)

Steering committee

Not later than 90 days after the date of enactment of this Act, the Secretary shall establish a steering committee to facilitate the development of the pathways under paragraph (1), to be composed of members appointed by the Secretary, consisting of persons with appropriate expertise representing a diverse range of interests in the public, private, and academic sectors, including representatives of—

(A)

the Smart Grid Task Force; and

(B)

the Smart Grid Advisory Committee.

(b)

Technical assistance

The Secretary may provide technical assistance to States, Indian tribes, or units of local government to adopt 1 or more elements of the pathways developed under subsection (a)(1).

2305.

Performance metrics for electricity infrastructure providers

(a)

In general

Not later than 2 years after the date of enactment of this Act, the Secretary shall submit to the appropriate committees of Congress a report that includes—

(1)

an evaluation of the performance of the electric grid as of the date of the report; and

(2)

a description of the quantified costs and benefits associated with the changes evaluated under the scenarios developed under section 2302.

(b)

Considerations for development of metrics

In developing metrics for evaluating and quantifying the electric grid under subsection (a), the Secretary shall consider—

(1)

standard methodologies for calculating improvements or deteriorations in the performance metrics, such as reliability, grid efficiency, power quality, consumer satisfaction, sustainability, and financial incentives;

(2)

standard methodologies for calculating value to ratepayers, including broad economic and related impacts from improvements to the performance metrics;

(3)

appropriate ownership and operating roles for electric utilities that would enable improved performance through the adoption of emerging, commercially available or advanced grid technologies or solutions, including—

(A)

multicustomer micro-grids;

(B)

distributed energy resources;

(C)

energy storage;

(D)

electric vehicles;

(E)

electric vehicle charging infrastructure;

(F)

integrated information and communications systems;

(G)

transactive energy systems; and

(H)

advanced demand management systems; and

(4)

with respect to States, the role of the grid operator in enabling a robust future electric system to ensure that—

(A)

electric utilities remain financially viable;

(B)

electric utilities make the needed investments that ensure a reliable, secure, and resilient grid; and

(C)

costs incurred to transform to an integrated grid are allocated and recovered responsibly, efficiently, and equitably.

2306.

State and regional electricity distribution planning

(a)

In general

Upon the request of a State or regional organization, the Secretary shall partner with States and regional organizations to facilitate the development of State and regional electricity distribution plans by—

(1)

conducting a resource assessment and analysis of future demand and distribution requirements; and

(2)

developing open source tools for State and regional planning and operations.

(b)

Risk and security analysis

The assessment under subsection (a)(1) shall include—

(1)

the evaluation of the physical and cybersecurity needs of an advanced distribution management system and the integration of distributed energy resources; and

(2)

advanced use of grid architecture to analyze risks in an all-hazards approach that includes communications infrastructure, control systems architecture, and power systems architecture.

(c)

Technical assistance

For the purpose of developing State and regional electricity distribution plans, the Secretary shall provide technical assistance to—

(1)

States;

(2)

regional reliability entities; and

(3)

other distribution asset owners and operators.

2307.

Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out sections 2302 through 2307 $200,000,000 for each of fiscal years 2017 through 2026.

2308.

Electric transmission infrastructure permitting

(a)

Interagency rapid response team for transmission

(1)

Establishment

There is established an interagency rapid response team, to be known as the Interagency Rapid Response Team for Transmission (referred to in this subsection as the Team), to expedite and improve the permitting process for electric transmission infrastructure on Federal land and non-Federal land.

(2)

Mission

The mission of the Team shall be—

(A)

to improve the timeliness and efficiency of electric transmission infrastructure permitting; and

(B)

to facilitate the performance of maintenance and upgrades to electric transmission lines on Federal land and non-Federal land.

(3)

Membership

The Team shall be comprised of representatives of—

(A)

the Federal Energy Regulatory Commission;

(B)

the Department;

(C)

the Department of the Interior;

(D)

the Department of Defense;

(E)

the Department of Agriculture;

(F)

the Council on Environmental Quality;

(G)

the Department of Commerce;

(H)

the Advisory Council on Historic Preservation; and

(I)

the Environmental Protection Agency.

(4)

Duties

The Team shall—

(A)

facilitate coordination and unified environmental documentation among electric transmission infrastructure project applicants, Federal agencies, States, and Indian tribes involved in the siting and permitting process;

(B)

establish clear timelines for the review and coordination of electric transmission infrastructure projects by the applicable agencies;

(C)

ensure that each electric transmission infrastructure project is posted on the Federal permitting transmission tracking system known as e-Trans, including information on the status and anticipated completion date of each project; and

(D)

regularly notify all participating members of the Team involved in any specific permit of—

(i)

any outstanding agency action that is required with respect to the permit; and

(ii)

any approval or required comment that has exceeded statutory or agency timelines for completion, including an identification of any Federal agency, department, or field office that has not met the applicable timeline.

(5)

Annual reports

Annually, the Team 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 that describes the average completion time for specific categories of regionally and nationally significant transmission projects, based on information obtained from the applicable Federal agencies.

(6)

Use of data by OMB

Using data provided by the Team, the Director of the Office of Management and Budget shall prioritize inclusion of individual electric transmission infrastructure projects on the website operated by the Office of Management and Budget in accordance with section 1122 of title 31, United States Code.

(b)

Transmission Ombudsperson

(1)

Establishment

To enhance and ensure the reliability of the electric grid, there is established within the Council on Environmental Quality the position of Transmission Ombudsperson (referred to in this subsection as the Ombudsperson), to provide a unified point of contact for—

(A)

resolving interagency or intra-agency issues or delays with respect to electric transmission infrastructure permits; and

(B)

receiving and resolving complaints from parties with outstanding or in-process applications relating to electric transmission infrastructure.

(2)

Duties

The Ombudsperson shall—

(A)

establish a process for—

(i)

facilitating the permitting process for performance of maintenance and upgrades to electric transmission lines on Federal land and non-Federal land, with a special emphasis on facilitating access for immediate maintenance, repair, and vegetation management needs;

(ii)

resolving complaints filed with the Ombudsperson with respect to in-process electric transmission infrastructure permits; and

(iii)

issuing recommended resolutions to address the complaints filed with the Ombudsperson; and

(B)

hear, compile, and share any complaints filed with Ombudsperson relating to in-process electric transmission infrastructure permits.

(c)

Agreements

(1)

In general

The Secretary of the Interior, with respect to public lands (as defined in section 103(e) of the Federal Land Policy and Management Act (43 U.S.C. 1702(e)), and the Secretary of Agriculture, with respect to National Forest System land, shall provide for continuity of the existing use and occupancy for the transmission of electric energy by any Federal department or agency granted across public lands or National Forest System land.

(2)

Agreements

The Secretary of the Interior or the Secretary of Agriculture, as applicable, within 30 days after receiving a request from the Federal department or agency administering the electric energy transmission facilities, shall, in consultation with that department or agency, initiate agreements regarding the use and occupancy or right-of-way (including vegetation management agreements, where applicable).

(d)

Geomatic data

If a Federal or State department or agency considering an aspect of an application for Federal authorization requires the applicant to submit environmental data, the department or agency shall consider any such data gathered by geomatic techniques, including tools and techniques used in land surveying, remote sensing, cartography, geographic information systems, global navigation satellite systems, photogrammetry, geophysics, geography, or other remote means.

2309.

Report by transmission organizations on distributed energy resources and micro-grid systems

(a)

Definitions

In this section:

(1)

Distributed energy resource

The term distributed energy resource means an electricity supply resource that, as permitted by State law—

(A)
(i)

is interconnected to the electric system operated by a transmission organization at or below 69kV; and

(ii)

is subject to dispatch by the transmission organization; and

(B)
(i)

generates electricity using any primary energy source, including solar energy and other renewable resources; or

(ii)

stores energy and is capable of supplying electricity to the electric system operated by the transmission organization from the storage reservoir.

(2)

Electric generating capacity resource

The term electric generating capacity resource means an electric generating resource, as measured by the maximum load-carrying ability of the resource, exclusive of station use and planned, unplanned, or other outage or derating, that is subject to dispatch by a transmission organization to meet the resource adequacy needs of the systems operated by the transmission organization.

(3)

Micro-grid system

The term micro-grid system means an electrically distinct system under common control that—

(A)

serves an electric load at or below 69kV from a distributed energy resource or electric generating capacity resource; and

(B)

is subject to dispatch by a transmission organization.

(4)

Transmission organization

The term transmission organization has the meaning given the term in section 3 of the Federal Power Act (16 U.S.C. 796).

(b)

Report

(1)

Notice

Not later than 14 days after the date of enactment of this section, the Commission shall submit to each transmission organization notice that the transmission organization is required to file with the Commission a report in accordance with paragraph (2).

(2)

Report

Not later than 180 days after the date on which a transmission organization receives a notice under paragraph (1), the transmission organization shall submit to the Commission a report that—

(A)
(i)

identifies distributed energy resources and micro-grid systems that are subject to dispatch by the transmission organization as of the date of the report; and

(ii)

describes the fuel sources and operational characteristics of such distributed energy resources and micro-grid systems, including, to the extent practicable, a discussion of the benefits and costs associated with the distributed energy resources and micro-grid systems identified under clause (i);

(B)

evaluates, with due regard for operational and economic benefits and costs, the potential for distributed energy resources and micro-grid systems to be deployed to the transmission organization over the short- and long-term periods in the planning cycle of the transmission organization; and

(C)

identifies—

(i)

over the short- and long-term periods in the planning cycle of the transmission organization, barriers to the deployment to the transmission organization of distributed energy resources and micro-grid systems; and

(ii)

potential changes to the operational requirements for, or charges associated with, the interconnection of distributed energy resources and micro-grid systems to the transmission organization that would reduce the barriers identified under clause (i).

2310.

Net metering study guidance

Title XVIII of Energy Policy Act of 2005 (Public Law 109–58; 119 Stat. 1122) is amended by adding at the end the following:

1841.

Net energy metering study

(a)

In general

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

(1)

issue guidance on criteria required to be included in studies of net metering conducted by the Department; and

(2)

undertake a study of net energy metering.

(b)

Requirements and contents

The model guidance issued under subsection (a) shall clarify without prejudice to other study criteria that any study of net energy metering, including the study conducted by the Department under subsection (a) shall—

(1)

be publicly available; and

(2)

assess benefits and costs of net energy metering, including—

(A)

load data, including hourly profiles;

(B)

distributed generation production data;

(C)

best available technology, including inverter capability; and

(D)

benefits and costs of distributed energy deployment, including—

(i)

environmental benefits;

(ii)

changes in electric system reliability;

(iii)

changes in peak power requirements;

(iv)

provision of ancillary services, including reactive power;

(v)

changes in power quality;

(vi)

changes in land-use effects;

(vii)

changes in right-of-way acquisition costs;

(viii)

changes in vulnerability to terrorism; and

(ix)

changes in infrastructure resilience.

.

2312.

Model guidance for combined heat and power systems and waste heat to power systems

(a)

Definitions

In this section:

(1)

Additional services

The term additional services means the provision of supplementary power, backup or standby power, maintenance power, or interruptible power to an electric consumer by an electric utility.

(2)

Waste heat to power system

(A)

In general

The term waste heat to power system means a system that generates electricity through the recovery of waste energy.

(B)

Exclusion

The term waste heat to power system does not include a system that generates electricity through the recovery of a heat resource from a process the primary purpose of which is the generation of electricity using a fossil fuel.

(3)

Other terms

(A)

PURPA

The terms electric consumer, electric utility, interconnection service, nonregulated electric utility, and State regulatory authority have the meanings given those terms in the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.), within the meaning of title I of that Act (16 U.S.C. 2611 et seq.).

(B)

EPCA

The terms combined heat and power system and waste energy have the meanings given those terms in section 371 of the Energy Policy and Conservation Act (42 U.S.C. 6341).

(b)

Review

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Federal Energy Regulatory Commission and other appropriate entities, shall review existing rules and procedures relating to interconnection service and additional services throughout the United States for electric generation with nameplate capacity up to 20 megawatts to identify barriers to the deployment of combined heat and power systems and waste heat to power systems.

(2)

Inclusion

The review under this subsection shall include a review of existing rules and procedures relating to—

(A)

determining and assigning costs of interconnection service and additional services; and

(B)

ensuring adequate cost recovery by an electric utility for interconnection service and additional services.

(c)

Model guidance

(1)

In general

Not later than 18 months after the date of enactment of this Act, the Secretary, in consultation with the Federal Energy Regulatory Commission and other appropriate entities, shall issue model guidance for interconnection service and additional services for use by State regulatory authorities and nonregulated electric utilities to reduce the barriers identified under subsection (b)(1).

(2)

Current best practices

The model guidance issued under this subsection shall reflect, to the maximum extent practicable, current best practices to encourage the deployment of combined heat and power systems and waste heat to power systems while ensuring the safety and reliability of the interconnected units and the distribution and transmission networks to which the units connect, including—

(A)

relevant current standards developed by the Institute of Electrical and Electronic Engineers; and

(B)

model codes and rules adopted by—

(i)

States; or

(ii)

associations of State regulatory agencies.

(3)

Factors for consideration

In establishing the model guidance under this subsection, the Secretary shall take into consideration—

(A)

the appropriateness of using standards or procedures for interconnection service that vary based on unit size, fuel type, or other relevant characteristics;

(B)

the appropriateness of establishing fast-track procedures for interconnection service;

(C)

the value of consistency with Federal interconnection rules established by the Federal Energy Regulatory Commission as of the date of enactment of this Act;

(D)

the best practices used to model outage assumptions and contingencies to determine fees or rates for additional services;

(E)

the appropriate duration, magnitude, or usage of demand charge ratchets;

(F)

potential alternative arrangements with respect to the procurement of additional services, including—

(i)

contracts tailored to individual electric consumers for additional services;

(ii)

procurement of additional services by an electric utility from a competitive market; and

(iii)

waivers of fees or rates for additional services for small electric consumers; and

(G)

outcomes such as increased electric reliability, fuel diversification, enhanced power quality, and reduced electric losses that may result from increased use of combined heat and power systems and waste heat to power systems.

E

Computing

2401.

Exascale computer research program

(a)

Renaming of Act

(1)

In general

Section 1 of the Department of Energy High-End Computing Revitalization Act of 2004 (15 U.S.C. 5501 note; Public Law 108–423) is amended by striking Department of Energy High-End Computing Revitalization Act of 2004 and inserting Exascale Computing Act of 2016.

(2)

Conforming amendment

Section 976(a)(1) of the Energy Policy Act of 2005 (42 U.S.C. 16316(1)) is amended by striking Department of Energy High-End Computing Revitalization Act of 2004 and inserting Exascale Computing Act of 2016.

(b)

Definitions

Section 2 of the Exascale Computing Act of 2016 (15 U.S.C. 5541) is amended—

(1)

by redesignating paragraphs (2) through (5) as paragraphs (3) through (6), respectively;

(2)

by striking paragraph (1) and inserting the following:

(1)

Department

The term Department means the Department of Energy.

(2)

Exascale computing

The term exascale computing means computing through the use of a computing machine that performs near or above 10 to the 18th power floating point operations per second.

; and

(3)

in paragraph (6) (as redesignated by paragraph (1)), by striking , acting through the Director of the Office of Science of the Department of Energy.

(c)

Department of Energy High-End Computing Research and Development Program

Section 3 of the Exascale Computing Act of 2016 (15 U.S.C. 5542) is amended—

(1)

in subsection (a)(1), by striking program and inserting coordinated program across the Department;

(2)

in subsection (b)(2), by striking , which may and all that follows through architectures; and

(3)

by striking subsection (d) and inserting the following:

(d)

Exascale computing program

(1)

In general

The Secretary shall conduct a research program (referred to in this subsection as the Program) to develop 2 or more exascale computing machine architectures to promote the missions of the Department.

(2)

Implementation

(A)

In general

In carrying out the Program, the Secretary shall—

(i)

establish 2 or more National Laboratory partnerships with industry partners and institutions of higher education for the research and development of 2 or more exascale computing architectures across all applicable organizations of the Department; and

(ii)

provide, as appropriate, on a competitive, merit-reviewed basis, access for researchers in industries in the United States, institutions of higher education, National Laboratories, and other Federal agencies to the exascale computing systems developed pursuant to clause (i).

(B)

Selection of partners

The Secretary shall select members for the partnerships with the computing facilities of the Department under subparagraph (A) through a competitive, peer-review process.

(3)

Codesign and application development

(A)

In general

The Secretary shall carry out the Program through an integration of applications, computer science, applied mathematics, and computer hardware architecture using the partnerships established pursuant to paragraph (2) to ensure that, to the maximum extent practicable, 2 or more exascale computing machine architectures are capable of solving Department target applications and broader scientific problems.

(B)

Report

The Secretary shall submit to Congress a report on how the integration under subparagraph (A) is furthering application science data and computational workloads across application interests, including national security, material science, physical science, cybersecurity, biological science, the Materials Genome and BRAIN Initiatives of the President, advanced manufacturing, and the national electric grid.

(4)

Project review

(A)

In general

The exascale architectures developed pursuant to partnerships established pursuant to paragraph (2) shall be reviewed through a project review process.

(B)

Report

Not later than 90 days after the date of enactment of this subsection, the Secretary shall submit to Congress a report on—

(i)

the results of the review conducted under subparagraph (A); and

(ii)

the coordination and management of the Program to ensure an integrated research program across the Department.

(5)

Annual reports

At the time of the budget submission of the Department for each fiscal year, the Secretary, in consultation with the members of the partnerships established pursuant to paragraph (2), shall submit to Congress a report that describes funding for the Program as a whole by functional element of the Department and critical milestones.

.

(d)

Authorization of appropriations

Section 4 of the Exascale Computing Act of 2016 (15 U.S.C. 5543) is amended—

(1)

by striking this Act and inserting section 3(d); and

(2)

by striking paragraphs (1) through (3) and inserting the following:

(1)

$272,000,000 for fiscal year 2016;

(2)

$340,000,000 for fiscal year 2017; and

(3)

$360,000,000 for fiscal year 2018.

.

III

Supply

A

Renewables

I

Hydroelectric

3001.

Hydropower regulatory improvements

(a)

Sense of congress on the use of hydropower renewable resources

It is the sense of Congress that—

(1)

hydropower is a renewable resource for purposes of all Federal programs and is an essential source of energy in the United States; and

(2)

the United States should increase substantially the capacity and generation of clean, renewable hydropower resources that would improve environmental quality in the United States.

(b)

Modifying the definition of renewable energy To include hydropower

Section 203 of the Energy Policy Act of 2005 (42 U.S.C. 15852) is amended—

(1)

in subsection (a), by striking the following amounts and all that follows through paragraph (3) and inserting not less than 15 percent in fiscal year 2016 and each fiscal year thereafter shall be renewable energy. ; and

(2)

in subsection (b), by striking paragraph (2) and inserting the following:

(2)

Renewable energy

The term renewable energy means energy produced from solar, wind, biomass, landfill gas, ocean (including tidal, wave, current, and thermal), geothermal, municipal solid waste, or hydropower.

.

(c)

Licenses for construction

Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is amended, in the first proviso, by striking deem and inserting determine to be.

(d)

Preliminary permits

Section 5 of the Federal Power Act (16 U.S.C. 798) is amended—

(1)

in subsection (a), by striking three and inserting 4; and

(2)

in subsection (b)—

(A)

by striking Commission may extend the period of a preliminary permit once for not more than 2 additional years beyond the 3 years and inserting the following: “Commission may—

(1)

extend the period of a preliminary permit once for not more than 4 additional years beyond the 4 years

;

(B)

by striking the period at the end and inserting ; and; and

(C)

by adding at the end the following:

(2)

after the end of an extension period granted under paragraph (1), issue an additional permit to the permittee if the Commission determines that there are extraordinary circumstances that warrant the issuance of the additional permit.

.

(e)

Time limit for construction of project works

Section 13 of the Federal Power Act (16 U.S.C. 806) is amended in the second sentence by striking once but not longer than two additional years and inserting for not more than 8 additional years,.

(f)

License term

Section 15(e) of the Federal Power Act (16 U.S.C. 808(e)) is amended—

(1)

by striking (e) Except and inserting the following:

(e)

License term on relicensing

(1)

In general

Except

; and

(2)

by adding at the end the following:

(2)

Consideration

In determining the term of a license under paragraph (1), the Commission shall consider project-related investments by the licensee over the term of the existing license (including any terms under annual licenses) that resulted in new development, construction, capacity, efficiency improvements, or environmental measures, but which did not result in the extension of the term of the license by the Commission.

.

(g)

Operation of navigation facilities

Section 18 of the Federal Power Act (16 U.S.C. 811) is amended by striking the second, third, and fourth sentences.

(h)

Alternative conditions and prescriptions

Section 33 of the Federal Power Act (16 U.S.C. 823d) is amended—

(1)

in subsection (a)—

(A)

in paragraph (1), by striking deems and inserting determines;

(B)

in paragraph (2)(B), in the matter preceding clause (i), by inserting determined to be necessary before by the Secretary;

(C)

by striking paragraph (4); and

(D)

by striking paragraph (5);

(2)

in subsection (b)—

(A)

by striking paragraph (4); and

(B)

by striking paragraph (5); and

(3)

by adding at the end the following:

(c)

Further conditions

This section applies to any further conditions or prescriptions proposed or imposed pursuant to section 4(e), 6, or 18.

.

(i)

Licensing process improvements and coordination

Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended by adding at the end the following:

34.

Licensing process improvements

(a)

License studies

(1)

In general

To facilitate the timely and efficient completion of the license proceedings under this part, the Commission shall—

(A)

conduct an investigation of best practices in performing licensing studies, including methodologies and the design of studies to assess the full range of environmental impacts of a project;

(B)

compile a comprehensive collection of studies and data accessible to the public that could be used to inform license proceedings under this paragraph; and

(C)

encourage license applicants and cooperating agencies 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.

(2)

Use of existing studies

To the maximum extent practicable, the Commission shall use existing studies and data in individual licensing proceedings under this part in accordance with paragraph (1).

(3)

Nonduplication requirement

To the maximum extent practicable, the Commission shall ensure that studies and data required for any Federal authorization (as defined in section 35(a)) applicable to a particular project or facility are not duplicated in other licensing proceedings under this part.

(4)

Biological opinions

To the maximum extent practicable, the Secretary of Commerce shall ensure that relevant offices within the National Marine Fisheries Service prepare any biological opinion under section 7 of the Endangered Species Act of 1973 (16 U.S.C. 1536) that forms the basis for a prescription under section 18 on a concurrent rather than sequential basis.

(5)

Water quality certification deadline

(A)

In general

For purposes of issuing a license under this part, the deadline for a certifying agency to act under section 401(a) of the Federal Water Pollution Control Act (33 U.S.C. 1341(a)) shall take effect only on the submission of a request for certification determined to be complete by the certifying agency.

(B)

Notice of complete request

The certifying agency shall inform the Commission when a request for certification is determined to be complete.

35.

Licensing process coordination

(a)

Definition of Federal authorization

In this section, the term Federal authorization means any authorization required under Federal law (including any license, permit, special use authorization, certification, opinion, consultation, determination, or other approval) with respect to—

(1)

a project licensed under section 4 or 15; or

(2)

a facility exempted under—

(A)

section 30; or

(B)

section 405(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705(d)).

(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.

(2)

Other agencies

Each Federal and State agency considering an aspect of an application for Federal authorization shall cooperate with the Commission.

(c)

Schedule

(1)

Timing for issuance

It is the sense of Congress that all Federal authorizations required for a project or facility, including a license or exemption order of the Commission, should be issued by the date that is 3 years after the date on which an application is considered to be complete by the Commission.

(2)

Commission schedule

(A)

In general

The Commission shall establish a schedule for the issuance of all Federal authorizations.

(B)

Requirements

In establishing the schedule under subparagraph (A), the Commission shall—

(i)

consult and cooperate with the Federal and State agencies responsible for a Federal authorization;

(ii)

ensure the expeditious completion of all proceedings relating to a Federal authorization; and

(iii)

comply with applicable schedules established by Federal law with respect to a Federal authorization.

(3)

Resolution of interagency disputes

If the Federal agency fails to adhere to the schedule established by the Commission under paragraph (2), or if the final condition of the Secretary under section 4(e) or prescription under section 18 has been unreasonably delayed in derogation of the schedule established under paragraph (2), or if a proposed alternative condition or prescription has been unreasonably denied, or if a final condition or prescription would be inconsistent with the purposes of this part or other applicable law, the Commission may refer the matter to the Chairman of the Council on Environmental Quality—

(A)

to ensure timely participation;

(B)

to ensure a timely decision;

(C)

to mediate the dispute; or

(D)

to refer the matter to the President.

(d)

Consolidated record

(1)

In general

The Commission shall maintain official consolidated records of all license proceedings under this part.

(2)

Submission of recommendations

Any Federal or State agency that is providing recommendations with respect to a license proceeding under this part shall submit to the Commission for inclusion in the consolidated record relating to the license proceeding maintained under paragraph (1)—

(A)

the recommendations;

(B)

the rationale for the recommendations; and

(C)

any supporting materials relating to the recommendations.

(3)

Written statement

In a case in which a Federal agency is making a determination with respect to a covered measure (as defined in section 36(a)), the head of the Federal agency shall include in the consolidated record a written statement demonstrating that the Federal agency gave equal consideration to the effects of the covered measure on—

(A)

energy supply, distribution, cost, and use;

(B)

flood control;

(C)

navigation;

(D)

water supply; and

(E)

air quality and the preservation of other aspects of environmental quality.

36.

Trial-type hearings

(a)

Definition of covered measure

In this section, the term covered measure means—

(1)

a condition prescribed under section 4(e), including an alternative condition proposed under section 33(a);

(2)

fishways prescribed under section 18, including an alternative prescription proposed under section 33(b); or

(3)

any further condition pursuant to section 4(e), 6, or 18.

(b)

Authorization of trial-type hearing

The license applicant (including an applicant for a license under section 15) and any party to the proceeding shall be entitled to a determination on the record, after opportunity for a trial-type hearing of not more than 120 days, on any disputed issues of material fact with respect to an applicable covered measure.

(c)

Deadline for request

A request for a trial-type hearing under this section shall be submitted not later than 60 days after the date on which, as applicable—

(1)

the Secretary submits the condition under section 4(e) or prescription under section 18; or

(2)
(A)

the Commission publishes notice of the intention to use the reserved authority of the Commission to order a further condition under section 6; or

(B)

the Secretary exercises reserved authority under the license to prescribe, submit, or revise any condition to a license under the first proviso of section 4(e) or fishway prescribed under section 18, as appropriate.

(d)

No requirement To exhaust

By electing not to request a trial-type hearing under subsection (d), a license applicant and any other party to a license proceeding shall not be considered to have waived the right of the applicant or other party to raise any issue of fact or law in a non-trial-type proceeding, but no issue may be raised for the first time on rehearing or judicial review of the license decision of the Commission.

(e)

Administrative law judge

All disputed issues of material fact raised by a party in a request for a trial-type hearing submitted under subsection (d) shall be determined in a single trial-type hearing to be conducted by an Administrative Law Judge within the Office of Administrative Law Judges and Dispute Resolution of the Commission, in accordance with the Commission rules of practice and procedure under part 385 of title 18, Code of Federal Regulations (or successor regulations), and within the timeframe established by the Commission for each license proceeding (including a proceeding for a license under section 15) under section 35(c).

(f)

Stay

The Administrative Law Judge may impose a stay of a trial-type hearing under this section for a period of not more than 120 days to facilitate settlement negotiations relating to resolving the disputed issues of material fact with respect to the covered measure.

(g)

Decision of the Administrative Law Judge

(1)

Contents

The decision of the Administrative Law Judge shall contain—

(A)

findings of fact on all disputed issues of material fact;

(B)

conclusions of law necessary to make the findings of fact, including rulings on materiality and the admissibility of evidence; and

(C)

reasons for the findings and conclusions.

(2)

Limitation

The decision of the Administrative Law Judge shall not contain conclusions as to whether—

(A)

any condition or prescription should be adopted, modified, or rejected; or

(B)

any alternative condition or prescription should be adopted, modified, or rejected.

(3)

Finality

A decision of an Administrative Law Judge under this section with respect to a disputed issue of material fact shall not be subject to further administrative review.

(4)

Service

The Administrative Law Judge shall serve the decision on each party to the hearing and forward the complete record of the hearing to the Commission and the Secretary that proposed the original condition or prescription.

(h)

Secretarial determination

(1)

In general

Not later than 60 days after the date on which the Administrative Law Judge issues the decision under subsection (g) and in accordance with the schedule established by the Commission under section 35(c), the Secretary proposing a condition under section 4(e) or a prescription under section 18 shall file with the Commission a final determination to adopt, modify, or withdraw any condition or prescription that was the subject of a hearing under this section, based on the decision of the Administrative Law Judge.

(2)

Record of determination

The final determination of the Secretary filed with the Commission shall identify the reasons for the decision and any considerations taken into account that were not part of, or inconsistent with, the findings of the Administrative Law Judge and shall be included in the consolidated record in section 35(d).

(i)

Licensing decision of the Commission

Notwithstanding sections 4(e) and 18, if the Commission finds that the final condition or prescription of the Secretary is inconsistent with the purposes of this part or other applicable law, the Commission may refer the matter to the Chairman of the Council on Environmental Quality under section 35(c).

(j)

Judicial review

The decision of the Administrative Law Judge and the record of determination of the Secretary shall be included in the record of the applicable licensing proceeding and subject to judicial review of the final licensing decision of the Commission under section 313(b).

37.

Pumped storage projects

In carrying out section 6(a) of the Hydropower Regulatory Efficiency Act of 2013 (16 U.S.C. 797 note; Public Law 113–23), the Commission shall consider a closed loop pumped storage project to include a project—

(1)

in which the upper and lower reservoirs do not impound or directly withdraw water from a navigable stream; or

(2)

that is not continuously connected to a naturally flowing water feature.

38.

Annual reports

(a)

Commission annual report

(1)

In general

The Commission 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 an annual report that—

(A)

describes and quantifies, for each licensed, exempted, or proposed project under this part or section 405(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2705(d)) (referred to in this subsection as the covered project), the quantity of energy and capacity