FEDERAL ENERGY MANAGEMENT AMENDMENTS.

SEC. 152. FEDERAL ENERGY MANAGEMENT AMENDMENTS. (a) Purpose.— Section 542 of the National Energy Conservation Policy Act (42 U.S.C. 8252) is amended by inserting after “use of energy” the following: “and water, and the use of renewable energy sources,”. (b) Requirements for Federal Agencies.— Section 543 of such Act (42 U.S.C. 8253(a)) is amended— (1) in the section heading by striking “GOALS” and inserting “REQUIREMENTS”; (2) in subsection (a) by striking “Goal” and inserting “Requirement;” (3) in subsection (a)(1), by striking the period at the end and inserting the following: “and so that the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 2000 is at least 20 percent less than the energy consumption per gross square foot of its Federal buildings in use during fiscal year 1985.”; and (4) by redesignating subsection (b) as subsection (d) and inserting after subsection (a) the following: “(b) Energy Management Requirement for Federal Agencies.— (1) Not later than January 1, 2005, each agency shall, to the maximum extent practicable, install in Federal buildings owned by the United States all energy and water conservation measures with payback periods of less than 10 years, as determined by using the methods and procedures developed pursuant to section 544. “(2) The Secretary may waive the requirements of this subsection for any agency for such periods as the Secretary may determine if the Secretary finds that the agency is taking all practicable steps to meet the requirements and that the requirements of this subsection will pose an unacceptable burden upon the agency. If the Secretary waives the requirements of this subsection, the Secretary shall notify the Congress promptly in writing with an explanation and a justification of the reasons for such waiver. “(3) This subsection shall not apply to an agency’s facilities that generate or transmit electric energy or to the uranium enrichment facilities operated by the Department of Energy. “(4) An agency may participate in the Environmental Protection Agency’s ‘Green Lights’ program for purposes of receiving technical assistance in complying with the requirements of this section. “(c) Exclusions.— (1) An agency may exclude, from the energy consumption requirements for the year 2000 established under subsection (a) and the requirements of subsection (b)(1), any Federal building or collection of Federal buildings, and the associated energy consumption and gross square footage, if the head of such agency finds that compliance with such requirements would be impractical. A finding of impracticability shall be based on the energy intensive-106 STAT. 2845ness of activities carried out in such Federal buildings or collection of Federal buildings, the type and amount of energy consumed, the technical feasibility of making the desired changes, and, in the cases of the Departments of Defense and Energy, the unique character of certain facilities operated by such Departments. “(2) Each agency shall identify and list, in each report made under section 548(a), the Federal buildings designated by it for such exclusion. The Secretary shall review such findings for consistency with the impracticability standards set forth in paragraph (1), and may within 90 days after receipt of the findings, reverse a finding of impracticability. In the case of any such reversal, the agency shall comply with the energy consumption requirements for the building concerned.”. (c) Implementation.— Section 543(d) of such Act (as redesignated by subsection (b)(4) of this section) is amended— “(1) in the material preceding paragraph (1), by striking out “To achieve the goal established in subsection (a),” and inserting in lieu thereof the following: “The Secretary shall consult with the Secretary of Defense and the Administrator of General Services in developing guidelines for the implementation of this part. To meet the requirements of this section,”: (2) by striking out paragraph (1) and inserting in lieu thereof the following: “(1) prepare and submit to the Secretary, not later than December 31, 1993, a plan describing how the agency intends to meet such requirements, including how it will— “(A) designate personnel primarily responsible for achieving such requirements; “(B) identify high priority projects through calculation of payback periods; “(C) take maximum advantage of contracts authorized under title VIII of this Act, of financial incentives and other services provided by utilities for efficiency investment, and of other forms of financing to reduce the direct costs to the Government; and “(D) otherwise implement this part;”; (3) in paragraph (2), by inserting before the semicolon at the end the following: “and update such surveys as needed, incorporating any relevant information obtained from the survey conducted pursuant to section 550”; (4) by striking out paragraph (3) and inserting in lieu thereof the following: “(3) using such surveys, determine the cost and payback period of energy and water conservation measures likely to achieve the requirements of this section; “(4) install energy and water conservation measures that will achieve the requirements of this section through the methods and procedures established pursuant to section 544; and”; and (5) by redesignating paragraph (4) as paragraph (5). (d) Life Cycle Cost Methods and Procedures.— Section 544 of such Act (42 U.S.C. 8254) is amended— (1) in subsection (a), in the material preceding paragraph (1), by striking out “National Bureau of Standards, and inserting in lieu thereof “National Institute of Standards and Technology,”; and 106 STAT. 2846 (2) in subsection (b)(2), by striking “agency shall” and all that follows through the period at the end and inserting the following: “agency shall, after January 1, 1994, fully consider the efficiency of all potential building space at the time of renewing or entering into a new lease.”. (e) Identification of Funds.— Section 545 of such Act (42 U.S.C. 8255) is amended to read as follows: “SEC. 545. BUDGET TREATMENT FOR ENERGY CONSERVATION MEASURES. “The President shall transmit to the Congress, along with each budget that is submitted to the Congress under section 1105 of title 31, United States Code, a statement of the amount of appropriations requested in such budget, if any, on an individual agency basis, for— “(1) electric and other energy costs to be incurred in operating and maintaining agency facilities; and “(2) compliance with the provisions of this part, the Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.), and all applicable Executive orders, including Executive Order 12003 (42 U.S.C. 6201 note) and Executive Order 12759 (56 Fed. Reg. 16257).”. (f) Incentive Program.— Section 546 of such Act (42 U.S.C. 8256) is amended— (1) by striking “(a) In General.—” and inserting in lieu thereof “(a) Contracts.—(1)”; (2) by redesignating subsection (b) as paragraph (2) and amending it to read as follows: “(2) The Secretary shall, not later than 18 months after the date of the enactment of the Energy Policy Act of 1992 and after consultation with the Director of the Office of Management and Budget, the Secretary of Defense, and the Administrator of General Services, develop appropriate procedures and methods for use by agencies to implement the incentives referred to in paragraph (1).”; (3) by striking out subsection (c); and (4) by adding at the end the following new subsections: “(b) Federal Energy Efficiency Fund.— (1) The Secretary shall establish a Federal Energy Efficiency Fund to provide grants to agencies to assist them in meeting the requirements of section 543. “(2) Not later than June 30, 1993, the Secretary shall issue guidelines to be followed by agencies submitting proposals for such grants. All agencies shall be eligible to submit proposals for grants under the Fund. “(3) The Secretary shall award grants from the Fund after a competitive assessment of the technical and economic effectiveness of each agency proposal. The Secretary shall consider the following factors in determining whether to provide funding under this subsection: “(A) The cost-effectiveness of the project. “(B) The amount of energy and cost savings anticipated to the Federal Government. “(C) The amount of funding committed to the project by the agency requesting financial assistance. “(D) The extent that a proposal leverages financing from other non-Federal sources. 106 STAT. 2847 “(E) Any other factor which the Secretary determines will result in the greatest amount of energy and cost savings to the Federal Government. “(4) There are authorized to be appropriated, to remain available to be expended, to carry out this subsection not more than $10,000,000 for fiscal year 1994, $50,000,000 for fiscal year 1995, and such sums as may be necessary for fiscal years thereafter. “(c) Utility Incentive Programs.— (1) Agencies are authorized and encouraged to participate in programs to increase energy efficiency and for water conservation or the management of electricity demand conducted by gas, water, or electric utilities and generally available to customers of such utilities. “(2) Each agency may accept any financial incentive, goods, or services generally available from any such utility, to increase energy efficiency or to conserve water or manage electricity demand. “(3) Each agency is encouraged to enter into negotiations with electric, water, and gas utilities to design cost-effective demand management and conservation incentive programs to address the unique needs of facilities utilized by such agency. “(4) If an agency satisfies the criteria which generally apply to other customers of a utility incentive program, such agency may not be denied collection of rebates or other incentives. “(5) (A) An amount equal to fifty percent of the energy and water cost savings realized by an agency (other than the Department of Defense) with respect to funds appropriated for any fiscal year beginning after fiscal year 1992 (including financial benefits resulting from energy savings performance contracts under title VIII and utility energy efficiency rebates) shall, subject to appropriation, remain available for expenditure by such agency for additional energy efficiency measures which may include related employee incentive programs, particularly at those facilities at which energy savings were achieved. (B) Agencies shall establish a fund and maintain strict financial accounting and controls for savings realized and expenditures made under this subsection. Records maintained pursuant to this subparagraph shall be made available for public inspection upon request. “(d) Financial Incentive Program for Facility Energy Managers.— (1) The Secretary shall, in consultation with the Task Force established pursuant to section 547, establish a financial bonus program to reward, with funds made available for such purpose, outstanding Federal facility energy managers in agencies and the United States Postal Service. “(2) Not later than June 1, 1993, the Secretary shall issue procedures for implementing and conducting the award program, including the criteria to be used in selecting outstanding energy managers and contributors who have— “(A) improved energy performance through increased energy efficiency; “(B) implemented proven energy efficiency and energy conservation techniques, devices, equipment, or procedures; “(C) developed and implemented training programs for facility energy managers, operators, and maintenance personnel; “(D) developed and implemented employee awareness programs; 106 STAT. 2848 “(E) succeeded in generating utility incentives, shared energy savings contracts, and other federally approved performance based energy savings contracts; “(F) made successful efforts to fulfill compliance with energy reduction mandates, including the provisions of section 543; and “(G) succeeded in the implementation of the guidelines established under section 159. “(3) There is authorized to be appropriated to carry out this subsection not more than $250,000 for each of the fiscal years 1993 1994 and 1995. (g) Reports.— Section 548 of such Act (42 U.S.C. 8258) is amended— (1) in subsection (b)(1), by striking “including” and all that follows through the semicolon and inserting the following: “including— “(A) a copy of the list of the exclusions made under sections 543(a)(2) and 543(c)(3); and “(B) a statement detailing the amount of funds awarded to each agency under section 546(b), the energy and water conservation measures installed with such funds, the projected energy and water savings to be realized from installed measures, and, for each installed measure for which the projected energy and water savings reported in the previous year were not realized, the percentage of such projected savings that was not realized, the reasons such savings were not realized, and proposals for, and projected costs of, achieving such projected savings in the future;”; and (2) by adding at the end the following new subsection: “(c) Other Report.— The Secretary, in consultation with the Administrator of General Services, shall— “(1) conduct a study and evaluate legal, institutional, and other constraints to connecting buildings owned or leased by the Federal Government to district heating and district cooling systems; and “(2) not later than 18 months after the date of the enactment of this subsection, transmit to the Congress a report containing the findings and conclusions of such study, including recommendations for the development of streamlined processes for the consideration of connecting buildings owned or leased by the Federal Government to district heating and cooling systems.”. (h) Demonstration of New Technology; Survey of Energy Saving Potential.— Such Act is amended— (1) by redesignating section 549 as section 551; and (2) by inserting the following new sections after section 548: “SEC. 549. DEMONSTRATION OF NEW TECHNOLOGY. “(a) Demonstration Program.— Not later than January 1, 1994, the Secretary, in cooperation with the Administrator of General Services, shall establish a demonstration program to install, in federally owned facilities or federally assisted housing, energy conservation measures for which the Secretary has determined that such installation would accelerate commercial viability. In those cases where technologies are determined to be equivalent, 106 STAT. 2849priority shall be given to those technologies that have received or are receiving Federal financial assistance. “(b) Selection Criteria.— In addition to the determination under subsection (a), the Secretary shall select, in cooperation with the Administrator of General Services, proposals to be funded under this section on the basis of— “(1) cost-effectiveness; “(2) technical feasibility and system reliability in a working environment; “(3) lack of market penetration in the Federal sector; “(4) the potential needs of the proposing Federal agency for the technology, projected over 5 to 10 years; “(5) the potential Federal sector market, projected over 5 to 10 years; “(6) energy efficiency; and “(7) other environmental benefits, including the projected reduction of greenhouse gas emissions and indoor air pollution. “(c) Proposals.— Federal agencies may submit to the Secretary, for each fiscal year, proposals for projects to be funded by the Secretary under this section. Each such proposal shall include— “(1) a description of the proposed project emphasizing the innovative use of technology in the Federal sector; “(2) a description of the technical reliability and cost-effectiveness data expected to be acquired; “(3) an identification of the potential needs of the Federal agency for the technology; “(4) a commitment to adopt the technology, if the project establishes its technical reliability and life cycle cost-effectiveness, to supply at least 10 percent of the Federal agency’s potential needs identified under paragraph (3); “(5) schedules and milestones for installing additional units; and “(6) a technology transfer plan to publicize the results of the project. “(d) Participation by GSA.— The Secretary may only select a project for funding under this section which is proposed to be carried out in a building under the jurisdiction of the General Services Administration if the project will be carried out by the Administrator of General Services. If such project involves a total expenditure in excess of $1,600,000, no appropriation shall be made for such project unless such project has been approved by a resolution adopted by the Committee on Public Works and Transportation of the House of Representatives and the Committee on Environment and Public Works of the Senate. “(e) Study.— The Secretary shall conduct a study to evaluate the potential use of the purchasing power of the Federal Government to promote the development and commercialization of energy efficient products. The study shall identify products for which there is a high potential for Federal purchasing power to substantially promote their development and commercialization, and shall include a plan to develop such potential. The study shall be conducted in consultation with utilities, manufacturers, and appropriate non-profit organizations concerned with energy efficiency. The Secretary shall report to the Congress on the results of the study not later than two years after the date of the enactment of this Act. 106 STAT. 2850 “(f) Authorization of Appropriations.— There are authorized to be appropriated to the Secretary for carrying out this section $5,000,000 for each of the fiscal years 1993, 1994, and 1995. “SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL. “(a) In General.— The Secretary shall, in consultation with the Interagency Energy Management Task Force established under section 547, carry out an energy survey for the purposes of— “(1) determining the maximum potential cost effective energy savings that may be achieved in a representative sample of buildings owned or leased by the Federal Government in different areas of the country; “(2) making recommendations for cost effective energy efficiency and renewable energy improvements in those buildings and in other similar Federal buildings; and “(3) identifying barriers which may prevent an agency’s ability to comply with section 543 and other energy management goals. “(b) Implementation.— (1) The Secretary shall transmit to the Committee on Energy and Natural Resources and the Committee on Governmental Affairs of the Senate and the Committee on Energy and Commerce, the Committee on Government Operations, and the Committee on Public Works and Transportation of the House of Representatives, within 180 days after the date of the enactment of the Energy Policy Act of 1992, a plan for implementing this section. “(2) The Secretary shall designate buildings to be surveyed in the project so as to obtain a sample of the buildings of the types and m the climates that is representative of buildings owned or leased by Federal agencies in the United States that consume the major portion of the energy consumed in Federal buildings. Such sample shall include, where appropriate, the following types of Federal facility space: “(A) Housing. “(B) Storage. “(C) Office. “(D) Services. “(E) Schools. “(F) Research and Development. “(G) Industrial. “(H) Prisons. “(I) Hospitals. “(3) For purposes of this section, an improvement shall be considered cost effective if the cost of the energy saved or displaced by the improvement exceeds the cost of the improvement over the remaining life of a Federal building or the remaining term of a lease of a building leased by the Federal Government as determined by the life cycle costing methodology developed under section 544. “(c) Personnel.— (1) In carrying out this section, the Secretary shall utilize personnel who are— “(A) employees of the Department of Energy; or “(B) selected by the agencies utilizing the buildings which are being surveyed under this section. “(2) Such personnel shall be detailed for the purpose of carrying out this section without any reduction of salary or benefits. 106 STAT. 2851 “(d) Report.— As soon as practicable after the completion of the project carried out under this section, the Secretary shall transmit a report of the findings and conclusions of the project to the Committee on Energy and Natural Resources and the Committee on Governmental Affairs of the Senate, the Committee on Energy and Commerce, the Committee on Government Operations, and the Committee on Public Works and Transportation of the House of Representatives, and the agencies who own the buildings involved in such project. Such report shall include an analysis of the probability of each agency achieving the 20 percent reduction goal established under section 543(a) of the National Energy Conservation Policy Act (42 U.S.C. 8253(a)).”. (i) Technical Amendments.— (1) Section 548 of such Act (42 U.S.C. 8258) is amended— (A) in subsection (a)(2), by striking “546(b)” and inserting in lieu thereof “546(a)(2)”; and (B) in subsection (b), in the material preceding paragraph (1), by striking “annually,” and insert the following: “, not later than April 2 of each year,”. (2) The table of contents of such Act is amended by striking the item for section 549 and inserting in lieu thereof the following new items: “Sec. 549. Demonstration of new technology. “Sec. 550. Survey of energy saving potential. “Sec. 651. Definitions.”. (3) Section 3 of the Federal Energy Management Improvement Act of 1988 (42 U.S.C. 8253 note) is hereby repealed.