USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL BUILDINGS.

SEC. 1002. USE OF ENERGY AND WATER EFFICIENCY MEASURES IN FEDERAL BUILDINGS. (a) 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, to the extent that the information is not duplicative of information provided to the Secretary under a separate authority; “(B) the quantity and investment value of the contracts for the previous year; “(C) the guaranteed energy savings, or for contracts without a guarantee, the estimated energy savings, for the previous year, as compared to the measured energy savings for the previous year; “(D) a forecast of the estimated quantity and investment value of contracts anticipated in the following year for each agency; and “(E)(i) a comparison of the information described in subparagraph (B) and the forecast described in subparagraph (D) in the report of the previous year; and “(ii) if applicable, the reasons for any differences in the data compared under clause (i).” . (b) 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”. (c) 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.” . (d) Miscellaneous Authority; Excluded Contracts.—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 subtitle I of title 40, United States Code, a Federal agency may accept, retain, sell, or transfer, and apply the proceeds of the sale or transfer of, any energy and water incentive, rebate, grid services revenue, or credit (including a renewable energy certificate) to fund a contract under this title. “(I) Excluded contracts.—A contract entered into under this title may not be for work performed— “(i) at a Federal hydroelectric facility that provides power marketed by a Power Marketing Administration; or “(ii) at a hydroelectric facility owned and operated by the Tennessee Valley Authority established under the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831 et seq.).” . (e) 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”. (f) 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 any energy and water incentive, rebate, grid services revenue, or credit (including a renewable energy certificate); 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.” . (g) Energy and Water Conservation Measures.—Section 543 of the National Energy Conservation Policy Act (42 U.S.C. 8253) is amended— (1) in the section heading, by inserting “and water” after “energy”; (2) in subsection (b)— (A) in the subsection heading, by inserting “and Water” after “Energy”; and (B) by striking paragraphs (1) and (2) and inserting the following: “(1) In general.—Each agency shall— “(A) not later than October 1, 2022, to the maximum extent practicable, begin installing in Federal buildings owned by the United States all energy and water conservation measures determined by the Secretary to be life cycle cost-effective (as defined in subsection (f)(1)); and “(B) complete the installation described in subparagraph (A) as soon as practicable after the date referred to in that subparagraph. “(2) Explanation of noncompliance.— “(A) In general.—If an agency fails to comply with paragraph (1), the agency shall submit to the Secretary, using guidelines developed by the Secretary, an explanation of the reasons for the failure. “(B) Report to congress.—Not later than January 1, 2022, and every 2 years thereafter, the Secretary shall submit to Congress a report that describes any noncompliance by an agency with the requirements of paragraph (1).” ; (3) in subsection (c)(1)— (A) in subparagraph (A)— (i) in the matter preceding clause (i), by striking “An agency” and inserting “The head of each agency”; and (ii) by inserting “or water” after “energy” each place it appears; and (B) in subparagraph (B)(i), by inserting “or water” after “energy”; (4) in subsection (d)(2), by inserting “and water” after “energy”; (5) in subsection (e)— (A) in the subsection heading, by inserting “and Water” after “Energy”; (B) in paragraph (1)— (i) in the first sentence— (I) by striking “October 1, 2012” and inserting “October 1, 2022”; (II) by inserting “and water” after “energy”; and (III) by inserting “and water” after “electricity”; (ii) in the second sentence, by inserting “and water” after “electricity”; and (iii) in the fourth sentence, by inserting “and water” after “energy”; (C) in paragraph (2)— (i) in subparagraph (A)— (I) by striking “and” before “Federal”; and (II) by inserting “and any other person the Secretary deems necessary,” before “shall”; (ii) in subparagraph (B)— (I) in clause (i)(II), by inserting “and water” after “energy” each place it appears; (II) in clause (ii), by inserting “and water” after “energy”; and (III) in clause (iv), by inserting “and water” after “energy”; and (iii) by adding at the end the following: “(C) Update.—Not later than 180 days after the date of enactment of this subparagraph, the Secretary shall update the guidelines established under subparagraph (A) to take into account water efficiency requirements under this section.” ; (D) in paragraph (3), in the matter preceding subparagraph (A), by striking “established under paragraph (2)” and inserting “updated under paragraph (2)(C)”; and (E) in paragraph (4)— (i) in subparagraph (A)— (I) by striking “this paragraph” and inserting “the Energy Act of 2020”; and (II) by inserting “and water” before “use in”; and (ii) in subparagraph (B)(ii), in the matter preceding subclause (I), by inserting “and water” after “energy”; and (6) in subsection (f)— (A) in paragraph (1)— (i) by redesignating subparagraphs (E), (F), and (G) as subparagraphs (F), (G), and (H), respectively; and (ii) by inserting after subparagraph (D) the following: “(E) Ongoing commissioning.—The term ‘ongoing commissioning’ means an ongoing process of commissioning using monitored data, the primary goal of which is to ensure continuous optimum performance of a facility, in accordance with design or operating needs, over the useful life of the facility, while meeting facility occupancy requirements.” ; (B) in paragraph (2)— (i) in subparagraph (A), by inserting “and water” before “use”; (ii) in subparagraph (B)— (I) by striking “energy” before “efficiency”; and (II) by inserting “or water” before “use”; and (iii) by adding at the end the following: “(C) Energy management system.—An energy manager designated for a facility under subparagraph (A) shall take into consideration— “(i) the use of a system to manage energy and water use at the facility; and “(ii) the applicability of the certification of the facility in accordance with the International Organization for Standardization standard numbered 50001 and entitled ‘Energy Management Systems’.” ; (C) by striking paragraphs (3) and (4) and inserting the following: “(3) Energy and water evaluations and commissioning.— “(A) Evaluations.—Except as provided in subparagraph (B), not later than the date that is 180 days after the date of enactment of the Energy Act of 2020, and annually thereafter, each energy manager shall complete, for the preceding calendar year, a comprehensive energy and water evaluation and recommissioning or retrocommissioning for approximately 25 percent of the facilities of the applicable agency that meet the criteria under paragraph (2)(B) in a manner that ensures that an evaluation of each facility is completed not less frequently than once every 4 years. “(B) Exceptions.—An evaluation and recommissioning or retrocommissioning shall not be required under subparagraph (A) with respect to a facility that, as of the date on which the evaluation and recommissioning or retrocommissioning would occur— “(i) has had a comprehensive energy and water evaluation during the preceding 8-year period; “(ii)(I) has been commissioned, recommissioned, or retrocommissioned during the preceding 10-year period; or “(II) is under ongoing commissioning, recommissioning, or retrocomissioning; “(iii) has not had a major change in function or use since the previous evaluation and recommissioning or retrocommissioning; “(iv) has been benchmarked with public disclosure under paragraph (8) during the preceding calendar year; and “(v)(I) based on the benchmarking described in clause (iv), has achieved at a facility level the most recent cumulative energy savings target under subsection (a) compared to the earlier of— “(aa) the date of the most recent evaluation; or “(bb) the date— “(AA) of the most recent commissioning, recommissioning, or retrocommissioning; or “(BB) on which ongoing commissioning began; or “(II) has a long-term contract in place guaranteeing energy savings at least as great as the energy savings target under subclause (I). “(4) Implementation of identified energy and water efficiency measures.— “(A) In general.—Not later than 2 years after the date of completion of each evaluation under paragraph (3), each energy manager shall implement any energy- or water-saving measure that— “(i) the Federal agency identified in the evaluation; and “(ii) is life cycle cost-effective, as determined by evaluating an individual measure or a bundle of measures with varying paybacks. “(B) Performance contracting.—Each Federal agency shall use performance contracting to address at least 50 percent of the measures identified under subparagraph (A)(i).” ; (D) in paragraph (7)(B)(ii)(II), by inserting “and water” after “energy”; and (E) in paragraph (9)(A), in the matter preceding clause (i), by inserting “and water” after “energy”. (h) Conforming Amendment.—The table of contents for the National Energy Conservation Policy Act (Public Law 95-619; 92 Stat. 3206) is amended by striking the item relating to section 543 and inserting the following: “Sec. 543. Energy and water management requirements.” .