Energy Savings and Industrial Competitiveness Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3962 To promote energy savings in residential buildings and industry, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 25, 2019 Mr. WELCH (for himself and Mr. MCKINLEY) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Transportation and Infrastructure, Science, Space, and Technology, Financial Services, the Budget, and Oversight and Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To promote 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 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Energy Savings and Industrial Competitiveness Act of 5 2019’’. 6 (b) TABLE OF CONTENTS.—The table of contents of 7 this Act is as follows: 8 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3962 IH 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 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. VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3962 IH 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 ‘‘(A) the Council of American Building Of- 18 ficials, or its legal successor, International Code 19 Council, Inc.; 20 ‘‘(B) the American Society of Heating, Re- 21 frigerating, and Air-Conditioning Engineers; or 22 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3962 IH ‘‘(C) other appropriate organizations.’’; 1 and 2 (2) by adding at the end the following: 3 ‘‘(17) IECC.—The term ‘IECC’ means the 4 International Energy Conservation Code. 5 ‘‘(18) INDIAN TRIBE.—The term ‘Indian tribe’ 6 has the meaning given the term in section 4 of the 7 Native American Housing Assistance and Self-De- 8 termination Act of 1996 (25 U.S.C. 4103).’’. 9 (b) STATE BUILDING ENERGY EFFICIENCY 10 CODES.—Section 304 of the Energy Conservation and 11 Production Act (42 U.S.C. 6833) is amended to read as 12 follows: 13 ‘‘SEC. 304. UPDATING STATE BUILDING ENERGY EFFI- 14 CIENCY CODES. 15 ‘‘(a) VOLUNTARY CODES AND STANDARDS.—Not- 16 withstanding any other provision of this section, any 17 model building code or standard established under section 18 304 shall not be binding on a State, local government, or 19 Indian tribe as a matter of Federal law. 20 ‘‘(b) ACTION BY SECRETARY.—The Secretary shall— 21 ‘‘(1) encourage and support the adoption of 22 building energy codes by States, Indian tribes, and, 23 as appropriate, by local governments that meet or 24 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3962 IH exceed the model building energy codes, or achieve 1 equivalent or greater energy savings; and 2 ‘‘(2) support full compliance with the State and 3 local codes. 4 ‘‘(c) STATE AND INDIAN TRIBE CERTIFICATION OF 5 BUILDING ENERGY CODE UPDATES.— 6 ‘‘(1) REVIEW AND UPDATING OF CODES BY 7 EACH STATE AND INDIAN TRIBE.— 8 ‘‘(A) IN GENERAL.—Not later than 2 years 9 after the date of publication of a revision to a 10 model building energy code, each State or In- 11 dian tribe shall certify whether the State or In- 12 dian tribe, respectively, has reviewed and up- 13 dated the energy provisions of the building code 14 of the State or Indian tribe, respectively. 15 ‘‘(B) DEMONSTRATION.—The certification 16 shall include a demonstration of whether the 17 energy savings for the code provisions that are 18 in effect throughout the territory of the State 19 or Indian tribe meet or exceed the energy sav- 20 ings of the updated model building energy code. 21 ‘‘(C) NO MODEL BUILDING ENERGY CODE 22 UPDATE.—If a model building energy code is 23 not updated by a target date established under 24 section 307(b)(2)(E), each State or Indian tribe 25 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 3962 IH shall, not later than 2 years after the specified 1 date, certify whether the State or Indian tribe, 2 respectively, has reviewed and updated the en- 3 ergy provisions of the building code of the State 4 or Indian tribe, respectively, to meet or exceed 5 the target in section 307(b)(2). 6 ‘‘(2) VALIDATION BY SECRETARY.—Not later 7 than 90 days after a State or Indian tribe certifi- 8 cation under paragraph (1), the Secretary shall— 9 ‘‘(A) determine whether the code provi- 10 sions of the State or Indian tribe, respectively, 11 meet the criteria specified in paragraph (1); 12 and 13 ‘‘(B) if the determination is positive, vali- 14 date the certification. 15 ‘‘(d) IMPROVEMENTS IN COMPLIANCE WITH BUILD- 16 ING ENERGY CODES.— 17 ‘‘(1) REQUIREMENT.— 18 ‘‘(A) IN GENERAL.—Not later than 3 years 19 after the date of a certification under sub- 20 section (c), each State and Indian tribe shall 21 certify whether the State and Indian tribe, re- 22 spectively, has— 23 ‘‘(i) achieved full compliance under 24 paragraph (3) with the applicable certified 25 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 3962 IH State and Indian tribe building energy 1 code or with the associated model building 2 energy code; or 3 ‘‘(ii) made significant progress under 4 paragraph (4) toward achieving compliance 5 with the applicable certified State and In- 6 dian tribe building energy code or with the 7 associated model building energy code. 8 ‘‘(B) REPEAT CERTIFICATIONS.—If the 9 State or Indian tribe certifies progress toward 10 achieving compliance, the State or Indian tribe 11 shall repeat the certification until the State or 12 Indian tribe certifies that the State or Indian 13 tribe has achieved full compliance, respectively. 14 ‘‘(2) MEASUREMENT OF COMPLIANCE.—A cer- 15 tification under paragraph (1) shall include docu- 16 mentation of the rate of compliance based on— 17 ‘‘(A) independent inspections of a random 18 sample of the buildings covered by the code in 19 the preceding year; or 20 ‘‘(B) an alternative method that yields an 21 accurate measure of compliance. 22 ‘‘(3) ACHIEVEMENT OF COMPLIANCE.—A State 23 or Indian tribe shall be considered to achieve full 24 compliance under paragraph (1) if— 25 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 3962 IH ‘‘(A) at least 90 percent of building space 1 covered by the code in the preceding year sub- 2 stantially meets all the requirements of the ap- 3 plicable code specified in paragraph (1), or 4 achieves equivalent or greater energy savings 5 level; or 6 ‘‘(B) the estimated excess energy use of 7 buildings that did not meet the applicable code 8 specified in paragraph (1) in the preceding 9 year, compared to a baseline of comparable 10 buildings that meet this code, is not more than 11 5 percent of the estimated energy use of all 12 buildings covered by this code during the pre- 13 ceding year. 14 ‘‘(4) SIGNIFICANT PROGRESS TOWARD 15 ACHIEVEMENT OF COMPLIANCE.—A State or Indian 16 tribe shall be considered to have made significant 17 progress toward achieving compliance for purposes 18 of paragraph (1) if the State or Indian tribe— 19 ‘‘(A) has developed and is implementing a 20 plan for achieving compliance during the 8- 21 year-period beginning on the date of enactment 22 of the Energy Savings and Industrial Competi- 23 tiveness Act of 2019, including annual targets 24 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 3962 IH for compliance and active training and enforce- 1 ment programs; and 2 ‘‘(B) has met the most recent target under 3 subparagraph (A). 4 ‘‘(5) VALIDATION BY SECRETARY.—Not later 5 than 90 days after a State or Indian tribe certifi- 6 cation under paragraph (1), the Secretary shall— 7 ‘‘(A) determine whether the State or In- 8 dian tribe has demonstrated meeting the cri- 9 teria of this subsection, including accurate 10 measurement of compliance; and 11 ‘‘(B) if the determination is positive, vali- 12 date the certification. 13 ‘‘(e) STATES OR INDIAN TRIBES THAT DO NOT 14 ACHIEVE COMPLIANCE.— 15 ‘‘(1) REPORTING.—A State or Indian tribe that 16 has not made a certification required under sub- 17 section (c) or (d) by the applicable deadline shall 18 submit to the Secretary a report describing— 19 ‘‘(A) the status of the State or Indian tribe 20 with respect to meeting the requirements and 21 submitting the certification; and 22 ‘‘(B) a plan for meeting the requirements 23 and submitting the certification. 24 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 3962 IH ‘‘(2) FEDERAL SUPPORT.—For any State or In- 1 dian tribe for which the Secretary has not validated 2 a certification by a deadline under subsection (c) or 3 (d), the lack of the certification may be a consider- 4 ation for Federal support authorized under this sec- 5 tion for code adoption and compliance activities. 6 ‘‘(3) LOCAL GOVERNMENT.—In any State or 7 Indian tribe for which the Secretary has not vali- 8 dated a certification under subsection (c) or (d), a 9 local government may be eligible for Federal support 10 under subsections (f) and (g) by meeting the certifi- 11 cation requirements of subsections (c) and (d). 12 ‘‘(4) REPORTS BY SECRETARY.— 13 ‘‘(A) IN GENERAL.—Not later than De- 14 cember 31, 2020, and not less frequently than 15 once every 3 years thereafter, the Secretary 16 shall submit to Congress and publish a report 17 describing— 18 ‘‘(i) the status of model building en- 19 ergy codes; 20 ‘‘(ii) the status of code adoption and 21 compliance in the States and Indian tribes; 22 ‘‘(iii) implementation of this section; 23 and 24 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 3962 IH ‘‘(iv) improvements in energy savings 1 over time as result of the targets estab- 2 lished under section 307(b)(2). 3 ‘‘(B) IMPACTS.—The report shall include 4 estimates of impacts of past action under this 5 section, and potential impacts of further action, 6 on— 7 ‘‘(i) upfront financial and construction 8 costs, cost benefits and returns (using in- 9 vestment analysis), and lifetime energy use 10 for buildings; 11 ‘‘(ii) resulting energy costs to individ- 12 uals and businesses; and 13 ‘‘(iii) resulting overall annual building 14 ownership and operating costs. 15 ‘‘(f) TECHNICAL ASSISTANCE TO STATES AND IN- 16 DIAN TRIBES.—The Secretary shall provide technical as- 17 sistance to States and Indian tribes to implement the goals 18 and requirements of this section, including procedures and 19 technical analysis for States and Indian tribes— 20 ‘‘(1) to improve and implement State residential 21 and commercial building energy codes; 22 ‘‘(2) to demonstrate that the code provisions of 23 the States and Indian tribes achieve equivalent or 24 VerDate Sep 11 2014 22:11 Jul 26, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 3962 IH greater energy savings than the model building en- 1 ergy codes and targets; 2 ‘‘(3) to document the rate of compliance with a 3 building energy code; and 4 ‘‘(4) to otherwise promote the design and con- 5 struction of energy- and water-efficient buildings. 6 ‘‘(g) AVAILABILITY OF INCENTIVE FUNDING.— 7 ‘‘(1) IN GENERAL.—The Secretary shall provide 8 incentive funding to States and Indian tribes— 9 ‘‘(A) to implement the requirements of this 10 section; 11 ‘‘(B) to improve and impleme [Text truncated for display. 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