H. Rpt. 119-481 accompanies the "Federal Mechanical Insulation Act" — legislation that falls within the Energy and Commerce Committee's jurisdiction. Committee reports serve as the official legislative history of a bill, documenting what the legislation would do and why the committee recommends passage. Reports of this kind include the committee's section-by-section analysis, any amendments adopted during markup, the Congressional Budget Office cost estimate, dissenting views from minority members, and the legal basis for the legislation. Courts and agencies consult committee reports when interpreting enacted laws, making these documents important beyond the immediate legislative moment.
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House Report 119-481 - FEDERAL MECHANICAL INSULATION ACT
[House Report 119-481]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-481
=======================================================================
FEDERAL MECHANICAL INSULATION ACT
----------------
February 4, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
----------------
Mr. Guthrie, from the Committee on Energy and Commerce,
submitted the following
R E P O R T
[To accompany H.R. 3474]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3474) to clarify that the installation of
mechanical insulation property is an energy or water efficiency
measure that may be used in Federal buildings for purposes of
section 543(f) of the National Energy Conservation Policy Act,
and for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 3
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 5
Statement of General Performance Goals and Objectives............ 5
Duplication of Federal Programs.................................. 5
Related Committee and Subcommittee Hearings...................... 5
Committee Cost Estimate.......................................... 6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 6
Advisory Committee Statement..................................... 6
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
Purpose and Summary
H.R. 3474, the Federal Mechanical Insulation Act, was
introduced by Representative Weber (R-TX) on May 15, 2025, and
referred to the Committee on Energy and Commerce on May 15,
2025. H.R. 3474 would add an assessment of whether mechanical
insulation should be updated or installed during energy and
water evaluations of federal buildings.
Background and Need for Legislation
With over 350,000 buildings under its ownership, the
federal government is the largest consumer of energy in the
United States.\1\ When it comes to the energy efficiency of
federal buildings, addressing the low hanging fruit can have
significant impact on lowering energy usage and subsequently,
demand on the electric grid. The consideration of installing
mechanical insulation is an opportunity for potential energy
efficiency increases by limiting thermal energy loss from
systems within federal buildings.
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\1\U.S. Dep't of Energy, About the Federal Energy Management
Program, (last visited Nov. 24, 2025), https://www.energy.gov/femp/
about-federal-energy-management-program#::text=
Breadcrumb,water%2Dreduction%20requirements%20and%20goals.
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On November 9, 1978, the National Energy Conservation
Policy Act was signed into law.\2\ The aim of the law, among
other things, was to provide regulations to conserve non-
renewable energy resources by reducing energy demand growth
without hindering economic growth. The statute established
federal energy management standards and guidelines, which
includes the evaluation of the energy and water usage of
federally owned buildings.\3\ Energy usage must be evaluated by
designated energy managers of the relevant federal agency, and
the managers are required to complete their comprehensive
energy and water use evaluations for approximately 25 percent
of federal facilities on an annual basis, so that an evaluation
of each facility is completed at least once every four
years.\4\
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\2\Pub. L. No. 95-619, 92 Stat. 3206.
\3\42 U.S.C. Sec. 8253.
\4\42 U.S.C. Sec. 8253(f)(2), (3).
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The intent of these evaluations is to identify areas of
improvements in energy and water efficiency that are reasonably
achievable. H.R. 3474 aims to increase opportunities for
improvements within these evaluations by requiring an
assessment of whether mechanical insulation should be updated
or installed during comprehensive energy and water evaluations
for federal buildings. The legislation defines mechanical
insulation properties as products which meet the American
Society of Heating, Refrigerating and Air-Conditioning
Engineers (ASHRAE) Reference Standard 90.1. Importantly, H.R.
3474 does not mandate or require the use of mechanical
insulation but instead highlights it as a tool for increasing
energy efficiency.
The Committee believes this measure will benefit energy
managers in completing their comprehensive evaluation and will
help lower the energy consumption of our nation's federal
buildings while saving taxpayer dollars.
Committee Action
On September 16, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3474. The Subcommittee received
testimony from:
Jeff Novak, Acting General Counsel and
Principal Deputy General Counsel, U.S. Department of
Energy;
George Lowe, Vice President of Governmental
Affairs and Public Policy, American Gas Association;
Jennifer Cleary, Vice President of
Regulatory Affairs, Association of Home Appliance
Manufacturers;
Brian Tebbenkamp, President and Owner,
Patriot Homes Inc; and,
Andrew deLaski, Executive Director,
Appliance Standards Awareness Project.
On November 19, 2025, the Subcommittee on Energy met in
open markup session and forwarded H.R. 3474, without amendment,
to the full Committee by a voice vote. On December 3, 2025, the
full Committee on Energy and Commerce met in open markup
session and ordered H.R. 3474, without amendment, favorably
reported to the House by a record vote of 51 yeas and 0 nays.
Committee Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Oversight Findings and Recommendations
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
New Budget Authority, Entitlement Authority,
and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 3474 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to require
an assessment of whether mechanical insulation should be
updated or installed during comprehensive energy and water
evaluations for federal buildings.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 3474 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
Related Committee and Subcommittee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearings were used to develop or consider H.R. 3474:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 3474. The title of the hearing was ``Powering
America's Future: Unleashing American Energy.'' The
Subcommittee received testimony from:
Amanda Eversole, Executive Vice President
and Chief Advocacy Officer, American Petroleum
Institute;
Brigham McCown, Senior Fellow and Director,
Initiative on American Energy Security, The Hudson
Institute;
Gary Arnold, Business Manager, Denver
Pipefitters Local 208; and,
Tyler O'Conner, Partner, Crowell & Moring
LLP
On March 5, 2025, the Subcommittee on Energy held a hearing
on H.R. 3474. The title of the hearing was ``Scaling for
Growth: Meeting the Demand for Reliable, Affordable
Electricity.'' The Subcommittee received testimony from:
Todd Brickhouse, CEO and General Manager,
Basin Electric Power Cooperative;
Asim Z. Haque, Senior Vice President for
Governmental and Member Servies, PJM;
Noel W. Black, Senior Vice President of
Regulatory Affairs, Southern Company; and,
Tyler H. Norris, James B. Duke Fellow, Duke
University.
On September 9, 2025, the Subcommittee on Energy held a
hearing on H.R. 3474. The title of the hearing was ``Building
the American Dream: Examining Affordability, Choice, and
Security in Appliance and Buildings Policies.'' The
Subcommittee received testimony from:
Buddy Hughes, Chairman, National Association
of Home Builders;
Ben Lieberman, Senior Fellow, Competitive
Enterprise Institute;
Jim Steffes, Senior Vice President of
Regulatory Affairs, Wasington Gas; and,
Kara Saul-Rinaldi, Chief Policy Officer,
Building Performance Association.
On September 16, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3474. The title of the hearing was
``Appliance and Buildings Policies: Restoring the American
Dream of Home Ownership and Consumer Choice.'' The Subcommittee
received testimony from:
Jeff Novak, Acting General Counsel and
Principal Deputy General Counsel, U.S. Department of
Energy;
George Lowe, Vice President of Governmental
Affairs and Public Policy, American Gas Association;
Jennifer Cleary, Vice President of
Regulatory Affairs, Association of Home Appliance
Manufacturers;
Brian Tebbenkamp, President and Owner,
Patriot Homes Inc.; and,
Andrew deLaski, Executive Director,
Appliance Standards Awareness Project.
Committee Cost Estimate
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974. At the time this report was
filed, the estimate was not available.
Earmark, Limited Tax Benefits, and Limited Tariff Benefits
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 3474 contains no earmarks, limited
tax benefits, or limited tariff benefits.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1: Short title
Section 1 provides a short title of the ``Federal
Mechanical Insulation Act.''
Section 2: Installation of mechanical insulation property as an energy
or water efficiency measure in Federal buildings
Section 2 amends the National Energy Conservation Policy
Act by defining mechanical insulation properties and requiring
an assessment of energy- and water-saving measures, including
the installation of mechanical insulation, during a
comprehensive energy and water evaluation.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
NATIONAL ENERGY CONSERVATION POLICY ACT
* * * * * * *
TITLE V--FEDERAL ENERGY INITIATIVE
* * * * * * *
PART 3--FEDERAL ENERGY MANAGEMENT
* * * * * * *
SEC. 543. ENERGY AND WATER MANAGEMENT REQUIREMENTS.
(a) Energy Performance Requirement for Federal Buildings.--
(1) Subject to paragraph (2), each agency shall apply energy
conservation measures to, and shall improve the design for the
construction of, the Federal buildings of the agency (including
each industrial or laboratory facility) so that the energy
consumption per gross square foot of the Federal buildings of
the agency in fiscal years 2006 through 2015 is reduced, as
compared with the energy consumption per gross square foot of
the Federal buildings of the agency in fiscal year 2003, by the
percentage specified in the following table:
Fiscal Year Percentage Reduction
2006...................................................... 2
2007...................................................... 4
2008...................................................... 9
2009...................................................... 12
2010...................................................... 15
2011...................................................... 18
2012...................................................... 21
2013...................................................... 24
2014...................................................... 27
2015...................................................... 30
(2) An agency may exclude from the requirements of paragraph
(1) any building, and the associated energy consumption and
gross square footage, in which energy intensive activities are
carried out. Each agency shall identify and list in each report
made under section 548(a) the buildings designated by it for
such exclusion.
(3) Not later than December 31, 2014, the Secretary shall
review the results of the implementation of the energy
performance requirement established under paragraph (1) and
submit to Congress recommendations concerning energy
performance requirements for fiscal years 2016 through 2025.
(b) Energy and Water Management Requirement for Federal
Agencies.--
(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) 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)(A) The head of each agency may exclude,
from the energy or water performance requirement for a fiscal
year established under subsection (a) and the energy or water
management requirement established under subsection (b), any
Federal building or collection of Federal buildings, if the
head of the agency finds that--
(i) compliance with those requirements would be
impracticable;
(ii) the agency has completed and submitted all
federally required energy or water management reports;
(iii) the agency has achieved compliance with the
energy or water efficiency requirements of this Act,
the Energy Policy Act of 1992, Executive orders, and
other Federal law; and
(iv) the agency has implemented all practicable, life
cycle cost-effective projects with respect to the
Federal building or collection of Federal buildings to
be excluded.
(B) A finding of impracticability under subparagraph (A)(i)
shall be based on--
(i) the energy or water intensiveness of activities
carried out in the Federal building or collection of
Federal buildings; or
(ii) the fact that the Federal building or collection
of Federal buildings is used in the performance of a
national security function.
(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 standards for exclusion set forth in
paragraph (1), and may within 90 days after receipt of the
findings, reverse the exclusion. In the case of any such
reversal, the agency shall comply with the requirements of
subsections (a) and (b)(1) for the building concerned.
(3) Not later than 180 days after the date of enactment of
this paragraph, the Secretary shall issue guidelines that
establish criteria for exclusions under paragraph (1).
(d) Implementation Steps.--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, each
agency shall--
(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;
(2) perform energy and water surveys of its Federal
buildings to the extent necessary and update such
surveys as needed, incorporating any relevant
information obtained from the survey conducted pursuant
to section 550;
(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
(5) ensure that the operation and maintenance
procedures applied under this section are continued.
(e) Metering of Energy and Water Use.--
(1) Deadline.--By October 1, 2022, in accordance with
guidelines established by the Secretary under paragraph
(2), all Federal buildings shall, for the purposes of
efficient use of energy and water and reduction in the
cost of electricity and water used in such buildings,
be metered. Each agency shall use, to the maximum
extent practicable, advanced meters or advanced
metering devices that provide data at least daily and
that measure at least hourly consumption of electricity
and water in the Federal buildings of the agency. Not
later than October 1, 2016, each agency shall provide
for equivalent metering of natural gas and steam, in
accordance with guidelines established by the Secretary
under paragraph (2). Such data shall be incorporated
into existing Federal energy and water tracking systems
and made available to Federal facility managers.
(2) Guidelines.--
(A) In general.--Not later than 180 days
after the date of enactment of this subsection,
the Secretary, in consultation with the
Department of Defense, the General Services
Administration, representatives from the
metering industry, utility industry, energy
services industry, energy efficiency industry,
energy efficiency advocacy organizations,
national laboratories, universities, Federal
facility managers, and any other person the
Secretary deems necessary, shall establish
guidelines for agencies to carry out paragraph
(1).
(B) Requirements for guidelines.--The
guidelines shall--
(i) take into consideration--
(I) the cost of metering and
the reduced cost of operation
and maintenance expected to
result from metering;
(II) the extent to which
metering is expected to result
in increased potential for
energy and water management,
increased potential for energy
and water savings and energy
and water efficiency
improvement, and cost and
energy and water savings due to
utility contract aggregation;
and
(III) the measurement and
verification protocols of the
Department of Energy;
(ii) include recommendations
concerning the amount of funds and the
number of trained personnel necessary
to gather and use the metering
information to track and reduce energy
and water use;
(iii) establish priorities for types
and locations of buildings to be
metered based on cost-effectiveness and
a schedule of one or more dates, not
later than 1 year after the date of
issuance of the guidelines, on which
the requirements specified in paragraph
(1) shall take effect; and
(iv) establish exclusions from the
requirements specified in paragraph (1)
based on the de minimis quantity of
energy and water use of a Federal
building, industrial process, or
structure.
(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.
(3) Plan.--Not later than 180 days after the date on
which guidelines are updated under paragraph (2)(C), in
a report submitted by the agency under section 548(a),
each agency shall submit to the Secretary a plan
describing the manner in which the agency will
implement the requirements of paragraph (1),
including--
(A) how the agency will designate personnel
primarily responsible for achieving the
requirements; and
(B) a demonstration by the agency, complete
with documentation, of any finding that
advanced meters or advanced metering devices
(as those terms are used in paragraph (1)), are
not practicable.
(4) Best practices report.--
(A) In general.--Not later than 180 days
after the date of enactment of the Energy Act
of 2020, the Secretary of Energy, in
consultation with the Secretary of Defense and
the Administrator of General Services, shall
develop, and issue a report on, best practices
for the use of advanced metering of energy and
water use in Federal facilities, buildings, and
equipment by Federal agencies.
(B) Components.--The report shall include, at
a minimum--
(i) summaries and analysis of the
reports by agencies under paragraph
(3);
(ii) recommendations on standard
requirements or guidelines for
automated energy and water management
systems, including--
(I) potential common
communications standards to
allow data sharing and
reporting;
(II) means of facilitating
continuous commissioning of
buildings and evidence-based
maintenance of buildings and
building systems; and
(III) standards for
sufficient levels of security
and protection against cyber
threats to ensure systems
cannot be controlled by
unauthorized persons; and
(iii) an analysis of--
(I) the types of advanced
metering and monitoring systems
being piloted, tested, or
installed in Federal buildings;
and
(II) existing techniques used
within the private sector or
other non-Federal government
buildings.
(f) Use of Energy and Water Efficiency Measures in Federal
Buildings.--
(1) Definitions.--In this subsection:
(A) Commissioning.--The term
``commissioning'', with respect to a facility,
means a systematic process--
(i) of ensuring, using appropriate
verification and documentation, during
the period beginning on the initial day
of the design phase of the facility and
ending not earlier than 1 year after
the date of completion of construction
of the facility, that all facility
systems perform interactively in
accordance with--
(I) the design documentation
and intent of the facility; and
(II) the operational needs of
the owner of the facility,
including preparation of
operation personnel; and
(ii) the primary goal of which is to
ensure fully functional systems that
can be properly operated and maintained
during the useful life of the facility.
(B) Energy manager.--
(i) In general.--The term ``energy
manager'', with respect to a facility,
means the individual who is responsible
for--
(I) ensuring compliance with
this subsection by the
facility; and
(II) reducing energy use at
the facility.
(ii) Inclusions.--The term ``energy
manager'' may include--
(I) a contractor of a
facility;
(II) a part-time employee of
a facility; and
(III) an individual who is
responsible for multiple
facilities.
(C) Facility.--
(i) In general.--The term
``facility'' means any building,
installation, structure, or other
property (including any applicable
fixtures) owned or operated by, or
constructed or manufactured and leased
to, the Federal Government.
(ii) Inclusions.--The term
``facility'' includes--
(I) a group of facilities at
a single location or multiple
locations managed as an
integrated operation; and
(II) contractor-operated
facilities owned by the Federal
Government.
(iii) Exclusions.--The term
``facility'' does not include any land
or site for which the cost of utilities
is not paid by the Federal Government.
(D) Life cycle cost-effective.--The term
``life cycle cost-effective'', with respect to
a measure, means a measure, the estimated
savings of which exceed the estimated costs
over the lifespan of the measure, as determined
in accordance with section 544.
(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.
(F) Payback period.--
(i) In general.--Subject to clause
(ii), the term ``payback period'', with
respect to a measure, means a value
equal to the quotient obtained by
dividing--
(I) the estimated initial
implementation cost of the
measure (other than financing
costs); by
(II) the annual cost savings
resulting from the measure,
including--
(aa) net savings in
estimated energy and
water costs; and
(bb) operations,
maintenance, repair,
replacement, and other
direct costs.
(ii) Modifications and exceptions.--
The Secretary, in guidelines issued
pursuant to paragraph (6), may make
such modifications and provide such
exceptions to the calculation of the
payback period of a measure as the
Secretary determines to be appropriate
to achieve the purposes of this Act.
(G) Recommissioning.--The term
``recommissioning'' means a process--
(i) of commissioning a facility or
system beyond the project development
and warranty phases of the facility or
system; and
(ii) the primary goal of which is to
ensure optimum performance of a
facility, in accordance with design or
current operating needs, over the
useful life of the facility, while
meeting building occupancy
requirements.
(H) Retrocommissioning.--The term
``retrocommissioning'' means a process of
commissioning a facility or system that was not
commissioned at the time of construction of the
facility or system.
(I) Mechanical insulation property.--The term
``mechanical insulation property'' means
insulation materials, facings, and accessory
products--
(i) placed in service--
(I) in connection with a
mechanical system; and
(II) in a manner that meets
or exceeds the minimum
requirements of the American
Society of Heating,
Refrigerating and Air-
Conditioning Engineers Standard
90.1, as in effect on the date
of enactment of this
subparagraph; and
(ii) which result in a reduction in
energy loss from the mechanical system.
(2) Facility energy managers.--
(A) In general.--Each Federal agency shall
designate an energy manager responsible for
implementing this subsection and reducing
energy and water use at each facility that
meets criteria under subparagraph (B).
(B) Covered facilities.--The Secretary shall
develop criteria, after consultation with
affected agencies, efficiency advocates, and
energy and utility service providers, that
cover, at a minimum, Federal facilities,
including central utility plants and
distribution systems and other energy intensive
operations, that constitute at least 75 percent
of facility energy or water use at each agency.
(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''.
(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, including identification
of energy- and water-saving measures (including
the installation of mechanical insulation
property, if applicable), 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).
(5) Follow-up on implemented measures.--For each
measure implemented under paragraph (4), each energy
manager shall ensure that--
(A) equipment, including building and
equipment controls, is fully commissioned at
acceptance to be operating at design
specifications;
(B) a plan for appropriate operations,
maintenance, and repair of the equipment is in
place at acceptance and is followed;
(C) equipment and system performance is
measured during its entire life to ensure
proper operations, maintenance, and repair; and
(D) energy and water savings are measured and
verified.
(6) Guidelines.--
(A) In general.--The Secretary shall issue
guidelines and necessary criteria that each
Federal agency shall follow for implementation
of--
(i) paragraphs (2) and (3) not later
than 180 days after the date of
enactment of this subsection; and
(ii) paragraphs (4) and (5) not later
than 1 year after the date of enactment
of this subsection.
(B) Relationship to funding source.--The
guidelines issued by the Secretary under
subparagraph (A) shall be appropriate and
uniform for measures funded with each type of
funding made available under paragraph (10),
but may distinguish between different types of
measures project size, and other criteria the
Secretary determines are relevant.
(7) Web-based certification.--
(A) In general.--For each facility that meets
the criteria established by the Secretary under
paragraph (2)(B), the energy manager shall use
the web-based tracking system under
subparagraph (B)--
(i) to certify compliance with the
requirements for--
(I) energy and water
evaluations under paragraph
(3);
(II) implementation of
identified energy and water
measures under paragraph (4);
and
(III) follow-up on
implemented measures under
paragraph (5); and
(ii) to publish energy and water
consumption data on an individual
facility basis.
(B) Deployment.--
(i) In general.--Not later than 1
year after the date of enactment of
this subsection, the Secretary shall
develop and deploy a web-based tracking
system required under this paragraph in
a manner that tracks, at a minimum--
(I) the covered facilities;
(II) the status of meeting
the requirements specified in
subparagraph (A);
(III) the estimated cost and
savings for measures required
to be implemented in a
facility;
(IV) the measured savings and
persistence of savings for
implemented measures; and
(V) the benchmarking
information disclosed under
paragraph (8)(C).
(ii) Ease of compliance.--The
Secretary shall ensure that energy
manager compliance with the
requirements in this paragraph, to the
maximum extent practicable--
(I) can be accomplished with
the use of streamlined
procedures and templates that
minimize the time demands on
Federal employees; and
(II) is coordinated with
other applicable energy and
water reporting requirements.
(C) Availability.--
(i) In general.--Subject to clause
(ii), the Secretary shall make the web-
based tracking system required under
this paragraph available to Congress,
other Federal agencies, and the public
through the Internet.
(ii) Exemptions.--At the request of a
Federal agency, the Secretary may
exempt specific data for specific
facilities from disclosure under clause
(i) for national security purposes.
(8) Benchmarking of federal facilities.--
(A) In general.--The energy manager shall
enter energy use data for each metered building
that is (or is a part of) a facility that meets
the criteria established by the Secretary under
paragraph (2)(B) into a building energy use
benchmarking system, such as the Energy Star
Portfolio Manager.
(B) System and guidance.--Not later than 1
year after the date of enactment of this
subsection, the Secretary shall--
(i) select or develop the building
energy use benchmarking system required
under this paragraph for each type of
building; and
(ii) issue guidance for use of the
system.
(C) Public disclosure.--Each energy manager
shall post the information entered into, or
generated by, a benchmarking system under this
subsection, on the web-based tracking system
under paragraph (7)(B). The energy manager
shall update such information each year, and
shall include in such reporting previous years'
information to allow changes in building
performance to be tracked over time.
(9) Federal agency scorecards.--
(A) In general.--The Director of the Office
of Management and Budget shall issue semiannual
scorecards for energy and water management
activities carried out by each Federal agency
that includes--
(i) summaries of the status of
implementing the various requirements
of the agency and its energy managers
under this subsection; and
(ii) any other means of measuring
performance that the Director considers
appropriate.
(B) Availability.--The Director shall make
the scorecards required under this paragraph
available to Congress, other Federal agencies,
and the public through the Internet.
(10) Funding and implementation.--
(A) Authorization of appropriations.--There
are authorized to be appropriated such sums as
are necessary to carry out this subsection.
(B) Funding options.--
(i) In general.--To carry out this
subsection, a Federal agency may use
any combination of--
(I) appropriated funds made
available under subparagraph
(A); and
(II) private financing
otherwise authorized under
Federal law, including
financing available through
energy savings performance
contracts or utility energy
service contracts.
(ii) Combined funding for same
measure.--A Federal agency may use any
combination of appropriated funds and
private financing described in clause
(i) to carry out the same measure under
this subsection.
(C) Implementation.--Each Federal agency may
implement the requirements under this
subsection itself or may contract out
performance of some or all of the requirements.
(11) Rule of construction.--This subsection shall not
be construed to require or to obviate any contractor
savings guarantees.
(g) Large Capital Energy Investments.--
(1) In general.--Each Federal agency shall ensure
that any large capital energy investment in an existing
building that is not a major renovation but involves
replacement of installed equipment (such as heating and
cooling systems), or involves renovation,
rehabilitation, expansion, or remodeling of existing
space, employs the most energy efficient designs,
systems, equipment, and controls that are life-cycle
cost effective.
(2) Process for review of investment decisions.--Not
later than 180 days after the date of enactment of this
subsection, each Federal agency shall--
(A) develop a process for reviewing each
decision made on a large capital energy
investment described in paragraph (1) to ensure
that the requirements of this subsection are
met; and
(B) report to the Director of the Office of
Management and Budget on the process
established.
(3) Compliance report.--Not later than 1 year after
the date of enactment of this subsection, the Director
of the Office of Management and Budget shall evaluate
and report to Congress on the compliance of each agency
with this subsection.
(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 that 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 the
Energy Act of 2020, each Federal agency shall
coordinate with the Director, the Secretary, and the
Administrator of the Environmental Protection Agency 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 at or for facilities owned and
operated by the Federal agency, taking into
consideration the performance goals established under
paragraph (4).
(3) Administration.--In developing an implementation
strategy under paragraph (2), 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;
(E) secure telework and travel substitution
tools; and
(F) mechanisms to ensure that the agency
realizes the energy cost savings of increased
efficiency and utilization.
(4) Performance goals.--
(A) In general.--Not later than 180 days
after the date of enactment of the Energy Act
of 2020, 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 at or for facilities
owned and operated by the Federal agencies.
(B) Best practices.--The Chief Information
Officers Council established under section 3603
of title 44, United States Code, shall
recommend best practices for the attainment of
the performance goals established under
subparagraph (A), which shall include, to the
extent applicable by law, consideration by a
Federal agency of the use of--
(i) energy savings performance
contracting; and
(ii) utility energy services
contracting.
(5) Reports.--
(A) Agency reports.--Each Federal agency
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, 2022, 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 Act of 2020.
(i) Federal Energy Management Program.--
(1) In general.--The Secretary shall carry out a
program, to be known as the ``Federal Energy Management
Program'' (referred to in this subsection as the
``Program''), to facilitate the implementation by the
Federal Government of cost-effective energy and water
management and energy-related investment practices--
(A) to coordinate and strengthen Federal
energy and water resilience;
(B) to promote environmental stewardship; and
(C) to reduce energy consumption during
periods of unusually high electricity or
natural gas demand.
(2) Federal director.--The Secretary shall appoint an
individual to serve as the director of the Program
(referred to in this subsection as the ``Federal
Director''), which shall be a career position in the
Senior Executive service, to administer the Program.
(3) Program activities.--
(A) Strategic planning and technical
assistance.--In administering the Program, the
Federal Director shall--
(i) provide technical assistance and
project implementation support and
guidance to agencies to identify,
implement, procure, and track energy
and water conservation measures
required under this Act and under other
provisions of law;
(ii) in coordination with the
Administrator of the General Services
Administration, establish appropriate
procedures, methods, and best practices
for use by agencies to select, monitor,
and terminate contracts entered into
pursuant to a utility incentive program
under section 546(c) with utilities;
(iii) carry out the responsibilities
of the Secretary under section 801, as
determined appropriate by the
Secretary;
(iv) establish and maintain internet-
based information resources and project
tracking systems and tools for energy
and water management;
(v) coordinate comprehensive and
strategic approaches to energy and
water resilience planning for agencies;
(vi) establish a recognition program
for Federal achievement in energy and
water management, energy-related
investment practices, environmental
stewardship, and other relevant areas,
through events such as individual
recognition award ceremonies and public
announcements; and
(vii) promote the installation of
demand-response technology and the use
of demand-response practices in Federal
buildings.
(B) Energy and water management and
reporting.--In administering the Program, the
Federal Director shall--
(i) track and report on the progress
of agencies in meeting the requirements
of the agency under this section;
(ii) make publicly available agency
performance data required under--
(I) this section and sections
544, 546, 547, and 548; and
(II) section 203 of the
Energy Policy Act of 2005 (42
U.S.C. 15852);
(iii)(I) collect energy and water use
and consumption data from each agency;
and
(II) based on that data, submit to
each agency a report that will
facilitate the energy and water
management, energy-related investment
practices, and environmental
stewardship of the agency in support of
Federal goals under this Act and under
other provisions of law;
(iv) carry out the responsibilities
of the Secretary under section 305 of
the Energy Conservation and Production
Act (42 U.S.C. 6834);
(v) in consultation with the
Administrator of the General Services
Administration, acting through the head
of the Office of High-Performance Green
Buildings, establish and implement
sustainable design principles for
Federal facilities; and
(vi) designate products that meet the
highest energy conservation standards
for categories not covered under the
Energy Star program established under
section 324A of the Energy Policy and
Conservation Act (42 U.S.C. 6294a).
(C) Federal interagency coordination.--In
administering the Program, the Federal Director
shall--
(i) develop and implement accredited
training consistent with existing
Federal programs and activities--
(I) relating to energy and
water use, management, and
resilience in Federal
facilities, energy-related
investment practices, and
environmental stewardship; and
(II) that includes in-person
training, internet-based
programs, and national in-
person training events;
(ii) carry out the functions of the
Secretary with respect to the
Interagency Energy Management Task
Force under section 547; and
(iii) report on the implementation of
the priorities of the President,
including Executive orders, relating to
energy and water use in Federal
facilities, in coordination with--
(I) the Office of Management
and Budget;
(II) the Council on
Environmental Quality; and
(III) any other entity, as
considered necessary by the
Federal Director.
(D) Facility and fleet optimization.--In
administering the Program, the Federal Director
shall develop guidance, supply assistance to,
and track the progress of agencies--
(i) in conducting portfolio-wide
facility energy and water resilience
planning and project integration;
(ii) in building new construction and
major renovations to meet the
sustainable design and energy and water
performance standards required under
this section;
(iii) in developing guidelines for--
(I) facility commissioning;
and
(II) facility operations and
maintenance; and
(iv) in coordination with the
Administrator of the General Services
Administration, in meeting statutory
and agency goals for Federal fleet
vehicles.
(4) Management council.--The Federal Director shall
establish a management council to advise the Federal
Director that shall--
(A) convene not less frequently than once
every quarter; and
(B) consist of representatives from--
(i) the Council on Environmental
Quality;
(ii) the Office of Management and
Budget; and
(iii) the Office of Federal High-
Performance Green Buildings in the
General Services Administration.
(5) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary to carry
out this subsection $36,000,000 for each of fiscal
years 2021 through 2025.
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