Energy Savings and Industrial Competitiveness Act of 2019

II Calendar No. 263 116TH CONGRESS 1ST SESSION S. 2137 [Report No. 116–143] To promote energy savings in residential buildings and industry, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 17, 2019 Mr. PORTMAN (for himself, Mrs. SHAHEEN, Ms. COLLINS, Mr. COONS, Ms. HASSAN, Mr. MANCHIN, Mr. WICKER, Mr. BENNET, Mr. WARNER, Ms. WARREN, and Mr. KING) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources OCTOBER 23, 2019 Reported by Ms. MURKOWSKI, with amendments [Omit the part struck through and insert the part printed in italic] A BILL To promote energy savings in residential buildings and industry, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 2 •S 2137 RS SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Energy Savings and Industrial Competitiveness Act of 3 2019’’. 4 (b) TABLE OF CONTENTS.—The table of contents of 5 this Act is as follows: 6 Sec. 1. Short title; table of contents. Sec. 2. Definition of Secretary. TITLE I—BUILDINGS Subtitle A—Building Energy Codes Sec. 101. Greater energy efficiency in building codes. Sec. 102. Cost-effective codes implementation for efficiency and resilience. Sec. 103. Commercial building energy consumption information sharing. Subtitle B—Worker Training and Capacity Building Sec. 111. Building training and assessment centers. Sec. 112. Career skills training. Subtitle C—School Buildings Sec. 121. Coordination of energy retrofitting assistance for schools. TITLE II—INDUSTRIAL EFFICIENCY AND COMPETITIVENESS Subtitle A—Manufacturing Energy Efficiency Sec. 201. Purposes. Sec. 202. Future of Industry program and industrial research and assessment centers. Sec. 203. Sustainable manufacturing initiative. Sec. 204. Conforming amendments. Subtitle B—Extended Product System Rebate Program Sec. 211. Extended Product System Rebate Program. Subtitle C—Transformer Rebate Program Sec. 221. Energy Efficient Transformer Rebate Program. TITLE III—FEDERAL AGENCY ENERGY EFFICIENCY Sec. 301. Energy-efficient and energy-saving information technologies. Sec. 302. Energy efficient data centers. TITLE IV—REGULATORY PROVISIONS Subtitle A—Third-Party Certification Under Energy Star Program VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 3 •S 2137 RS Sec. 401. Third-Party Certification Under Energy Star Program. Subtitle B—Federal Green Buildings Sec. 411. High-performance green Federal buildings. Subtitle C—Energy and Water Performance Requirements for Federal Buildings Sec. 421. Energy and water performance requirements for Federal buildings. Sec. 422. Federal Energy Management Program. Sec. 423. Federal building energy efficiency performance standards; certifi- cation system and level for green buildings. Sec. 424. Enhanced energy efficiency underwriting. TITLE V—MISCELLANEOUS Sec. 501. Budgetary effects. Sec. 502. Advance appropriations required. SEC. 2. DEFINITION OF SECRETARY. 1 In this Act, the term ‘‘Secretary’’ means the Sec- 2 retary of Energy. 3 TITLE I—BUILDINGS 4 Subtitle A—Building Energy Codes 5 SEC. 101. GREATER ENERGY EFFICIENCY IN BUILDING 6 CODES. 7 (a) DEFINITIONS.—Section 303 of the Energy Con- 8 servation and Production Act (42 U.S.C. 6832) is amend- 9 ed— 10 (1) by striking paragraph (14) and inserting 11 the following: 12 ‘‘(14) MODEL BUILDING ENERGY CODE.—The 13 term ‘model building energy code’ means a voluntary 14 building energy code or standard developed and up- 15 dated by interested persons, such as the code or 16 standard developed by— 17 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 4 •S 2137 RS ‘‘(A) the Council of American Building Of- 1 ficials, or its legal successor, International Code 2 Council, Inc.; 3 ‘‘(B) the American Society of Heating, Re- 4 frigerating, and Air-Conditioning Engineers; or 5 ‘‘(C) other appropriate organizations.’’; 6 and 7 (2) by adding at the end the following: 8 ‘‘(17) IECC.—The term ‘IECC’ means the 9 International Energy Conservation Code. 10 ‘‘(18) INDIAN TRIBE.—The term ‘Indian tribe’ 11 has the meaning given the term in section 4 of the 12 Native American Housing Assistance and Self-De- 13 termination Act of 1996 (25 U.S.C. 4103).’’. 14 (b) STATE BUILDING ENERGY EFFICIENCY 15 CODES.—Section 304 of the Energy Conservation and 16 Production Act (42 U.S.C. 6833) is amended to read as 17 follows: 18 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI- 19 CIENCY CODES. 20 ‘‘(a) VOLUNTARY CODES AND STANDARDS.—Not- 21 withstanding any other provision of this section, any 22 model building code or standard established under section 23 304 shall not be binding on a State, local government, or 24 Indian tribe as a matter of Federal law. 25 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 5 •S 2137 RS ‘‘(b) ACTION BY SECRETARY.—The Secretary shall— 1 ‘‘(1) encourage and support the adoption of 2 building energy codes by States, Indian tribes, and, 3 as appropriate, by local governments that meet or 4 exceed the model building energy codes, or achieve 5 equivalent or greater energy savings; and 6 ‘‘(2) support full compliance with the State and 7 local codes. 8 ‘‘(c) STATE AND INDIAN TRIBE CERTIFICATION OF 9 BUILDING ENERGY CODE UPDATES.— 10 ‘‘(1) REVIEW AND UPDATING OF CODES BY 11 EACH STATE AND INDIAN TRIBE.— 12 ‘‘(A) IN GENERAL.—Not later than 2 years 13 after the date of publication of a revision to a 14 model building energy code, each State or In- 15 dian tribe shall certify whether the State or In- 16 dian tribe, respectively, has reviewed and up- 17 dated the energy provisions of the building code 18 of the State or Indian tribe, respectively. 19 ‘‘(B) DEMONSTRATION.—The certification 20 shall include a demonstration of whether the 21 energy savings for the code provisions that are 22 in effect throughout the territory of the State 23 or Indian tribe meet or exceed the energy sav- 24 ings of the updated model building energy code. 25 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 6 •S 2137 RS ‘‘(C) NO MODEL BUILDING ENERGY CODE 1 UPDATE.—If a model building energy code is 2 not updated by a target date established under 3 section 307(b)(2)(E), each State or Indian tribe 4 shall, not later than 2 years after the specified 5 date, certify whether the State or Indian tribe, 6 respectively, has reviewed and updated the en- 7 ergy provisions of the building code of the State 8 or Indian tribe, respectively, to meet or exceed 9 the target in section 307(b)(2). 10 ‘‘(2) VALIDATION BY SECRETARY.—Not later 11 than 90 days after a State or Indian tribe certifi- 12 cation under paragraph (1), the Secretary shall— 13 ‘‘(A) determine whether the code provi- 14 sions of the State or Indian tribe, respectively, 15 meet the criteria specified in paragraph (1); 16 and 17 ‘‘(B) if the determination is positive, vali- 18 date the certification. 19 ‘‘(d) IMPROVEMENTS IN COMPLIANCE WITH BUILD- 20 ING ENERGY CODES.— 21 ‘‘(1) REQUIREMENT.— 22 ‘‘(A) IN GENERAL.—Not later than 3 years 23 after the date of a certification under sub- 24 section (c), each State and Indian tribe shall 25 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 7 •S 2137 RS certify whether the State and Indian tribe, re- 1 spectively, has— 2 ‘‘(i) achieved full compliance under 3 paragraph (3) with the applicable certified 4 State and Indian tribe building energy 5 code or with the associated model building 6 energy code; or 7 ‘‘(ii) made significant progress under 8 paragraph (4) toward achieving compliance 9 with the applicable certified State and In- 10 dian tribe building energy code or with the 11 associated model building energy code. 12 ‘‘(B) REPEAT CERTIFICATIONS.—If the 13 State or Indian tribe certifies progress toward 14 achieving compliance, the State or Indian tribe 15 shall repeat the certification until the State or 16 Indian tribe certifies that the State or Indian 17 tribe has achieved full compliance, respectively. 18 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer- 19 tification under paragraph (1) shall include docu- 20 mentation of the rate of compliance based on— 21 ‘‘(A) independent inspections of a random 22 sample of the buildings covered by the code in 23 the preceding year; or 24 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 8 •S 2137 RS ‘‘(B) an alternative method that yields an 1 accurate measure of compliance. 2 ‘‘(3) ACHIEVEMENT OF COMPLIANCE.—A State 3 or Indian tribe shall be considered to achieve full 4 compliance under paragraph (1) if— 5 ‘‘(A) at least 90 percent of building space 6 covered by the code in the preceding year sub- 7 stantially meets all the requirements of the ap- 8 plicable code specified in paragraph (1), or 9 achieves equivalent or greater energy savings 10 level; or 11 ‘‘(B) the estimated excess energy use of 12 buildings that did not meet the applicable code 13 specified in paragraph (1) in the preceding 14 year, compared to a baseline of comparable 15 buildings that meet this code, is not more than 16 5 percent of the estimated energy use of all 17 buildings covered by this code during the pre- 18 ceding year. 19 ‘‘(4) SIGNIFICANT PROGRESS TOWARD 20 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 21 tribe shall be considered to have made significant 22 progress toward achieving compliance for purposes 23 of paragraph (1) if the State or Indian tribe— 24 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 9 •S 2137 RS ‘‘(A) has developed and is implementing a 1 plan for achieving compliance during the 8- 2 year-period beginning on the date of enactment 3 of the Energy Savings and Industrial Competi- 4 tiveness Act of 2019, including annual targets 5 for compliance and active training and enforce- 6 ment programs; and 7 ‘‘(B) has met the most recent target under 8 subparagraph (A). 9 ‘‘(5) VALIDATION BY SECRETARY.—Not later 10 than 90 days after a State or Indian tribe certifi- 11 cation under paragraph (1), the Secretary shall— 12 ‘‘(A) determine whether the State or In- 13 dian tribe has demonstrated meeting the cri- 14 teria of this subsection, including accurate 15 measurement of compliance; and 16 ‘‘(B) if the determination is positive, vali- 17 date the certification. 18 ‘‘(e) STATES OR INDIAN TRIBES THAT DO NOT 19 ACHIEVE COMPLIANCE.— 20 ‘‘(1) REPORTING.—A State or Indian tribe that 21 has not made a certification required under sub- 22 section (c) or (d) by the applicable deadline shall 23 submit to the Secretary a report describing— 24 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 10 •S 2137 RS ‘‘(A) the status of the State or Indian tribe 1 with respect to meeting the requirements and 2 submitting the certification; and 3 ‘‘(B) a plan for meeting the requirements 4 and submitting the certification. 5 ‘‘(2) FEDERAL SUPPORT.—For any State or In- 6 dian tribe for which the Secretary has not validated 7 a certification by a deadline under subsection (c) or 8 (d), the lack of the certification may be a consider- 9 ation for Federal support authorized under this sec- 10 tion for code adoption and compliance activities. 11 ‘‘(3) LOCAL GOVERNMENT.—In any State or 12 Indian tribe for which the Secretary has not vali- 13 dated a certification under subsection (c) or (d), a 14 local government may be eligible for Federal support 15 under subsections (f) and (g) by meeting the certifi- 16 cation requirements of subsections (c) and (d). 17 ‘‘(4) REPORTS BY SECRETARY.— 18 ‘‘(A) IN GENERAL.—Not later than De- 19 cember 31, 2020, and not less frequently than 20 once every 3 years thereafter, the Secretary 21 shall submit to Congress and publish a report 22 describing— 23 ‘‘(i) the status of model building en- 24 ergy codes; 25 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 11 •S 2137 RS ‘‘(ii) the status of code adoption and 1 compliance in the States and Indian tribes; 2 ‘‘(iii) implementation of this section; 3 and 4 ‘‘(iv) improvements in energy savings 5 over time as result of the targets estab- 6 lished under section 307(b)(2). 7 ‘‘(B) IMPACTS.—The report shall include 8 estimates of impacts of past action under this 9 section, and potential impacts of further action, 10 on— 11 ‘‘(i) upfront financial and construction 12 costs, cost benefits and returns (using in- 13 vestment analysis), and lifetime energy use 14 for buildings; 15 ‘‘(ii) resulting energy costs to individ- 16 uals and businesses; and 17 ‘‘(iii) resulting overall annual building 18 ownership and operating costs. 19 ‘‘(f) TECHNICAL ASSISTANCE TO STATES AND IN- 20 DIAN TRIBES.—The Secretary shall provide technical as- 21 sistance to States and Indian tribes to implement the goals 22 and requirements of this section, including procedures and 23 technical analysis for States and Indian tribes— 24 VerDate Sep 11 2014 22:00 Oct 23, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2137.RS S2137 kjohnson on DSK79L0C42 with BILLS 12 •S 2137 RS ‘‘(1) to improve and implement State residential 1 and commercial building energy codes; 2 ‘‘(2) to demonstrate that the code provisions of 3 the States and Indian tribes achieve equivalent or 4 greater energy savings than the model building en- 5 ergy codes and targets; 6 ‘‘(3) to document the rate of compliance with a 7 building energy code; and 8 ‘‘(4) to otherwise promote the design and con- 9 struction of energy- and water-efficient buildings. 10 ‘‘(g) AVAILABILITY OF INCENTIVE FUNDING.— 11 ‘‘(1) IN GENERAL.—The Secretary shall provide 12 incentive funding to States and Indian tribes— 13 ‘‘(A) to implement the requirements of this 14 section; 15 ‘‘(B) to improve and implement residential 16 and commercial building energy codes, including 17 increasing [Text truncated for display. Full text available on Congress.gov.]