Summary of Energy Efficiency Provisions in ACELA

The following is a summary of the energy efficiency provisions in the American Clean Energy Leadership Act of 2009 (ACELA). ACELA is a counterpart bill to the American Clean Energy and Security Act of 2009 (ACES), the combined energy and climate bill recently passed by the House of Representatives. ACELA does not presently incorporate climate change legislation. This summary is based on the text of the bill as reported by the Senate Energy and Natural Resources Committee and subsequently amended in June 2010.

Title I: Clean Energy Technology Deployment

Subtitle A: Clean Energy Financing

This subtitle would establish the Clean Energy Deployment Administration (CEDA), an independent financing administration within the DOE. CEDA would manage the Clean Energy Investment Fund established in Section 104 of this subtitle to provide financing for the commercialization of clean energy, energy infrastructure, and energy efficiency technologies. The Clean Energy Investment Fund, housed in the Treasury, would consist of amounts appropriated for the existing Department of Energy Loan Guarantee program and an additional $10 billion authorized under this subtitle.

CEDA would to be managed by an Administrator, a nine-member Board of Directors with financial experience (including the Secretary and Administrator), and an eight-member Technical Advisory Council with expertise in clean energy. CEDA would issue direct loans, letters of credit, loan guarantees, and other debt instruments to promote investment in the efficient technologies in residential, retail, commercial and industrial buildings, the transformation the building stock of the United States to zero net energy consumption, waste heat recovery, and a number of other clean energy and energy infrastructure goals. Credit support would be awarded according to the commercialization potential of the technology as assessed by the Technical Advisory Council, the extent to which the project achieves in the clean energy goals established in the subtitle, the potential for the applicant to successfully complete the project, and criteria to ensure a portfolio investment approach to mitigate risk and diversify investments across technologies.

Subtitle B: Improved Transmission Siting

Section 121: Siting of Interstate Electric Transmission Facilities

This section would require that the electrical transmission policy of the United States be guided by consideration of renewable energy integration, reduced emissions from generation, reduction of power line congestion, reduced line losses, and demand-side management among other goals. To further these goals, the Federal Energy Regulatory Commission (FERC) would be directed to coordinate regional planning of transmission system upgrades and in consultation with interested parties, develop national electricity grid planning principles. Regional transmission entities, singly or in cooperation with one another, would be able to submit to FERC plans for high-priority national transmission projects.

FERC would encourage such plans to be drawn up on an interconnection-wide basis. If a plan were approved by FERC, but a state failed to approve construction within one year or placed unreasonable conditions on approval, a ‘certificate of public convenience and necessity’ could be applied for from FERC. FERC, after holding hearings for interested parties to comment, could grant the certificate subject to whatever conditions were thought necessary if the project were determined to be necessary for the public convenience and necessity. A certificate holder would also be allowed to apply for eminent domain to be exercised where property owners obstructed the necessary right-of-ways. The president would be able to approve or deny projects appealed to him.

Subtitle C: Renewable Electricity Standard

Sec. 131: Sense of Congress on Renewable Energy and Energy Efficiency

States the sense of Congress that renewable energy and energy efficiency should be supported and expanded for reasons of energy production, greenhouse gas emission reductions, and reduced dependence on foreign oil.

Sec. 132: Federal Renewable Electricity Standard

This section would require utilities to use a gradually increasing amount of renewable energy to generate electricity or of energy efficiency to reduce electric needs. Providers of electricity would have to obtain minimum percentages of their electricity sales from renewable energy or energy efficiency improvements, according to the schedule below. Utilities selling fewer than 4 million MWh per year would be exempt, as would those in Hawaii. Upon petition by the governor of a state (or the board of directors of the Tennessee Valley Authority), energy efficiency could be used to cover up to 26.67% of the required annual percentage.

Calendar Years	Minimum Annual Percentage (renewables + efficiency)	Maximum Efficiency Percentage (of electricity sales)
2011 – 2013	3.0	0.8
2014 – 2016	6.0	1.6
2017 – 2018	9.0	2.4
2019 – 2020	12.0	3.2
2021 – 2039	15.0	4.0

An electric utility could meet the standard through:

• Producing sufficient amounts of renewable energy or energy efficiency savings itself;
• The purchase of renewable energy or efficiency savings;
• The purchase of renewable energy credits or energy efficiency credits from “entities who have excess.” The Department of Energy would establish renewable energy and energy efficiency credit trading programs which would govern the trade in credits, including issuing credits to renewable generation sources and ensuring that credits issued under the RES program are used only once.
• Alternative compliance payments equal to 2.1 cents per kWh (adjusted for inflation). Funds from such payments would be returned to states whose utilities have chosen to comply through alternative compliance payments, to be used to develop renewable resources, promote electric vehicles, or to offset increases in customer’s bills. or
• Use of credits from prior years within three years of their date of issue (banking).

Utilities also could apply to the DOE for a waiver from the RES on the basis that it could cause ratepayer hardship.

Qualifying renewable energy sources would be: wind, solar, ocean, geothermal, biomass, landfill gas, incremental hydropower, hydrokinetic, new hydropower at existing dams with no generation. Certain types of renewable generation would be worth double or triple credits – including generation on Indian land, distributed generation, and algae-based energy.

Energy efficiency credits would be allowed for:

• Electricity savings at an ‘end-use consumer’ facility served by a utility, either calculated based on a baseline year, considering such factors as economic downturn and weather, or energy savings for new equipment calculated in relation to similar equipment of average efficiency;
• Electricity savings from combined heat and power systems compared to the separate generation of electricity and of useful heat; and
• Reductions in distribution system electricity losses as compared to new equipment of average efficiency,

Natural gas savings are not included. The DOE would develop regulations for the measurement and verification of efficiency savings.

Not later than January 15th, 2017, and then every five years, the DOE would review the program, and make recommendations to Congress, to ensure that it had not caused ‘economically harmful’ increases in electrical rates, had created economic benefits, and advanced the development of new technologies. The DOE could also recommend adjustment of the percentages of the RES and alteration of the definition of ’renewable energy’ to reflect technological advances.

Subtitle D: Energy and Water Integration

Section 141: Energy Water Nexus Study

This section would direct DOE to arrange with the National Academy of Sciences (NAS) for the NAS to conduct a study assessing water use associated with developing fuels in the transportation sector, and the water consumed in different types of electricity generation.

Section 142: Power Plant Water and Energy Efficiency

This section would direct DOE to conduct a study to identify the best available technologies to maximize efficiencies in water and energy use in producing electricity, and to develop other strategies.

Section 143: Reclamation Water Conservation and Energy Savings Study

This section would direct the Department of the Interior to evaluate the costs and energy used in storing and delivering water from reclamation projects, and to identify ways to reduce this energy use through conservation, improved operation, and renewable energy integration.

Section 145: Enhanced Information on Water-Related Energy Consumption

This section would require DOE’s Energy Information Administration to analyze the energy consumption associated with the acquisition, treatment and delivery of water for a variety of uses, including agricultural, municipal, industrial, and domestic purposes.

Section 146: Energy-Water Research and Development Roadmap

This section would direct DOE to develop a roadmap to define the future efforts necessary to address water-related challenges relating to sustainable energy generation and production.

Section 147: Energy-Water Clean Technology Grant Program

This section would establish a program to provide grants to local governments, states and tribes for the development of technologies that reduce the consumption of energy supplies and promote water conservation activities. The projects funded must be designed and carried out by the eligible public entities in partnership with private entities, and funding priority will be given to projects with the potential to create sustained energy consumption reductions of at least 50 percent. The grants are subject to cost-sharing requirements. It would authorize to be appropriated $100 million annually for FY 2010-2015.

Section 148: Rural Water Utilities Energy and Water Efficiency Program

This section would direct DOE to establish a program to provide on-site technical assistance to rural water utilities. The program would assist rural water utilities in improving energy efficiency, identifying and developing alternative and renewable energy supplies, and conserving water in rural areas and wastewater utilities. The section would authorize to be appropriated $7 million annually for FY 2010-2015.

Section 149: Comprehensive Water Use and Energy Savings Study

This section would direct DOE to study the interrelated nature of water and energy use and identify opportunities to reduce energy consumption and associated costs through the use of water conservation and water management studies, to promote the efficient use of energy and water.

Title II: Enhanced Energy Efficiency

Subtitle A: Manufacturing Energy Efficiency

Section 201: State Partnership Industrial Energy Efficiency Revolving Loan Program

This section would direct the DOE to establish a program to provide grants of up to $100 million to state-level lenders in order to support revolving loan funds for commercial and industrial manufacturers. Eligible projects must accelerate the implementation of technologies that improve energy efficiency and enhance industrial competitiveness of the United States. The section authorizes $500 million to be appropriated each year from 2010 to 2012 to carry out the program. All federal funds must be matched by non-federal sources.

Section 202: Coordination of Research and Development of Energy Efficient Technologies for Industry

This section would direct DOE to establish collaborative research and development programs within various programs in the Office of Energy Efficiency and Renewable Energy, as appropriate. The collaborative programs should allow each of the offices to better coordinate their research and development activities with those of the Industrial Technologies Program, combining the expertise of ITP and the other offices to further the goals of all the offices.

Section 203: Energy Efficiency Technologies Assessment

This section would direct DOE to conduct an assessment of cost-effective energy efficiency technologies “not widely implemented within the United States” that could cost effectively be applied to several listed industrial sectors whose processes are particularly energy-intensive. DOE would produce a technical assessment report detailing, for each of the several listed industries, the cost-effectiveness of the technologies, their efficiency and GHG reduction potential, and comparison with international adoption.

Section 204: Future of Industry Program

This section would require DOE’s Industrial Technologies Program, in coordination with energy-intensive industries, to create a “road map process” that would assess energy and greenhouse gas emissions in individual industrial processes. The “road map” would establish targets for “efficiency, sustainability, and resilience” and develop public-private action plans.

This section would also direct DOE to establish up to ten Centers of Excellence, at the “highest performing industrial research and assessment centers,” to coordinate and advise industrial research and assessment centers in their surrounding regions. It would also direct DOE to fund the creation of new research and assessment centers at higher education institutions to identify greenhouse gas emission reduction opportunities and promote sustainable manufacturing practices for small- and medium-sized manufacturers.

This section would direct DOE to provide funding for the Centers of Excellence and for the new research and assessment centers, and would direct the U.S. Small Business Administration, as practicable, to expedite loans to businesses for the implementation of recommendations of the centers. This section would also authorize additional funding for the entire Future of Industry Program, which was established in the Energy Independence and Security Act of 2007, and would direct some funding specifically toward industrial research and assessment centers.

Section 205: Sustainable Manufacturing Initiative

This section would create a sustainable manufacturing initiative under DOE’s Industrial Technologies Program. Under the initiative, at the request of manufacturers, the Industrial Technologies Program would provide onsite technical assistance to identify ways in which the manufacturer can improve its energy efficiency and achieve other environmental goals. Such sums as are necessary would be appropriated to fund the initiative.

Section 206: Innovation in Industry Grants

This section would provide competitive grants to state-industry partnerships that support the development, demonstration and commercialization of new technologies to improve efficiency, reduce pollution and GHG emissions, reduce industrial waste, and improve industrial cost-competitiveness. The grants could be provided to any given partnership only once, and the maximum value of each grant would be $500,000; states would be required to match federal grant funds.

Section 207: Study of Advanced Energy Technology Manufacturing Capabilities in the United States

This section would direct DOE to arrange with the National Academy of Sciences (NAS) for the NAS to conduct a study on the development of advanced manufacturing capabilities for various energy technologies.

Section 208: Industrial Technologies Steering Committee

This section would create an advisory steering committee to advise on the planning and implementation of the Industrial Technologies Program.

Subtitle B: Improved Efficiency in Appliances and Equipment

Section 221: Test Procedure Petition Process

This section would allow individuals to petition DOE to conduct a rulemaking to create or amend the test procedures that determine whether a given product meets the energy efficiency standards prescribed by DOE. It requires DOE to publish the petition within 90 days and to grant or deny it within 180 days of its receipt. Within 18 months of a petition being granted, DOE must either determine not to amend the testing procedure or public a revised testing procedure.

This section would also require DOE to review its test procedures every seven years and publish in the Federal Register either a notice of a revision in the test procedure or a notice of a determination not to amend the test procedure.

Section 222: Energy Star Program

This section would require DOE and EPA to come to agreement on several issues related to the Energy Star program that the two agencies jointly administer, including the roles and responsibilities of each agency, a process for high-level decision-making, a process for mediation of disagreement, a biannual program review, and other issues.

This section would also require DOE and EPA to review Energy Star product standards at least once every three years, or whenever the Energy Star market share of a given product category reaches 35 percent. DOE and EPA may either update the standard or determine that no update is justified and explain why.

This section would also require a demonstration that Energy Star-qualified products meet the Energy Star criteria, and would set out several exceptions and methods of determination.

This section would also require DOE and EPA to develop and publish standardized building energy audit methods for the Energy Star program.

This section would authorize to be appropriated $25 million annually for DOE and $100 million annually for EPA for the Energy Star program.

Section 223: Petition for Amended Standards

This section would amend existing law that allows individuals to petition DOE for a rulemaking on revisions to energy conservation standards for covered products. It would require DOE to publish in the Federal Register within 180 days a notice of DOE’s decision to grant or deny the petition, and an explanation of the decision. Within three years of receiving the petition, this section would require DOE to publish in the Federal Register a notice either issuing an amended standard or determining that no amendment is necessary.

Section 224: Portable Light Fixtures

This section would set energy conservation standards for most portable light fixtures manufactured on or after January 1, 2012. It sets standards for the light-emitting diode (LED), fluorescent and halogen light fixtures that would be permitted. It would specify that one way that light fixture manufacturers could meet the standard is equip their fixtures with qualifying screw-based sockets and pre-package them with qualifying compact fluorescent lamps (bulbs) or LED lamps (bulbs) that fit the sockets. It would also define test procedures for LED fixtures and LED light engines.

This section would also direct DOE to review these to determine whether further updates are technically feasible and economically justified, by January 1, 2014, to take effect January 1, 2016.

This section would also set standards for art work light fixtures, to take effect on January 1, 2012.

Section 225: GU-24 Base Lamps

This section would clarify the definition of a GU-24 base lamp and clarify energy conservation standards that apply to GU-24 base lamps. The definition would specify, among other things, that GU-24 base lamps are not considered incandescent lamps.

Section 226: Standards for Certain Incandescent Reflector Lamps and Reflector Lamps

This section would direct DOE to establish energy conservation standards for certain incandescent reflector lamps by July 1, 2011, to take effect by July 1, 2013; and to establish standards for all reflector lamps, including the incandescent reflector lamps mentioned above, by January 1, 2015, to take effect no sooner than three years after the standards are established. It would set forth certain suggestions for DOE to consider in establishing the standards for these standards.

Section 227: Standards for Commercial Furnaces

This section would set energy conservation standards and requirements for gas-fired and oil-fired warm air furnaces with an input rating of at least 225,000 btu per hour, to take effect in 2011.

Section 228: Motor Efficiency Rebate Program

This section would direct DOE to establish, by January 1, 2010, a program to provide rebates for the purchase and installation of new electric industrial motors that meet certain energy efficiency standards. To qualify for the rebates, entities must produce evidence that they are purchasing the new motors in order to replace older motors that meets certain specifications (to be established by DOE within 90 days of the enactment of the section), and that the older motor has been removed from service and been properly disposed of. The amount of the rebate would be the product of $25.00 and the nameplate horsepower of the new motor.

Under the program, the distributors of the new electric motor would also receive a rebate for each new motor sold, equal to the product of $5.00 and the nameplate horsepower of the new motor.
This section would authorize to be appropriated the following sums:

• $80 million for fiscal year 2010;
• $75 million for fiscal year 2011;
• $70 million for fiscal year 2012;
• $65 million for fiscal year 2013; and
• $60 million for fiscal year 2014

Section 229: Study of Compliance with Energy Standards for Appliances

This section would direct DOE to conduct a study on the degree of compliance with energy standards for appliances, including an investigation of compliance rates and options for improving compliance, including enforcement. It would direct DOE to report to the appropriate Congressional committees on the study’s findings within 18 months.

Section 231: Motor Market Assessment and Commercial Awareness Program

This section would direct DOE to conduct an assessment that would characterize and estimate the opportunities for improvement in the energy efficiency of motor systems by market segment, and that would contain an updated profile of motor system purchase and maintenance practices.

Based on this assessment, DOE would be required to develop recommendations to update the motor profile periodically; methods to estimate the energy savings and market penetration that are attributable to DOE’s Save Energy Now program; and an update to DOE’s Motor Master+ program. DOE would also be required to recommend ways that the Census Bureau could support these surveys.

This section would also direct DOE to develop a program, targeted at motor end-users and based on the assessment. The purpose of the program would be to increase awareness of the energy and cost-saving opportunities in commercial and industrial facilities of using higher-efficiency electric motors, and related information.

Section 232: Study Regarding Energy Superstar Concept

This section would direct DOE and EPA to jointly carry out a study to determine the feasibility and advisability of adding a new tier, the “Energy Superstar Tier,” to the Energy Star program. The new tier would encompass approximately the top 5 percent of the market share of a given category of product or building that are determined to be cost-effective to consumers. Furthermore, at least a portion of the product categories contained under the Energy Star program would be included under the tier.

This section would direct DOE and EPA to include in the study an examination of the costs and benefits of adding the new tier; a consideration of whether adding the tier would undesirably dilute the Energy Star brand; and a survey of a sample of Energy Star program participants for their opinions about adding the new tier.

This section would direct DOE and EPA to report their findings from the study to Congress within one year of the section’s enactment. The agencies should provide their recommendations on whether or not the Energy Superstar Tier should be established, and if so, they should propose a schedule and budget for its establishment and implementation.

[Sections 233-240A were added as an amendment in June 2010]

Section 233: Energy Conservation Standards

This section would put in effect most of a consensus agreement on home furnaces and air conditioners, including provisions on the definition of a standard and on preemption of state building codes.

It would clarify that DOE can set standards for more than one aspect of product performance for the same product (for central air conditioners and heat pumps, after advice from a stakeholder group).

It would set increased energy efficiency standards for most types of residential central air conditioners and heat pumps, to take effect in 2015. Base national standards would be set, along with stricter requirements in certain warmer parts of the country.

States & Territories	Split systems		Single Package Systems
	Central Air Conditioner	Heat Pumps
Base National Standard	13 SEER	14 SEER 8.2 HSPF	14 SEER 8.0 HSPF (for heat pumps)
AL, AZ, AR, CA, DE, FL, GA, HI, KY, LA, MD, MS, NV, NM, NC, OK, SC, TN, TX, VA, DC, PR, other territories	14 SEER	Base Standard	Base Standard
AZ, CA, NM, NV (in addition to above requirements)	<45,000 BTU/h: 12.2 EER ≥45,000 BTU/h: 11.7 EER		11.0 EER
SEER: Seasonal Energy Efficiency Ratio. HSPF: Heating Seasonal Performance Factor. BTU: British Thermal Units. EER: Energy Efficiency Ratio.

DOE would be directed to determine, by June 2011, whether standards should be set for certain through-the-wall central air conditioning and heat pumps, and for small duct high-velocity systems. Any such standards would take effect from July 2016 onwards.

It would also set increased energy efficiency standards for gas and oil furnaces, with stricter requirements in cold parts of the country to be set by DOE by May 2011:

States	Non-Weatherized Furnaces (May 1, 2013 onwards) Annual fuel utilization efficiency		Weatherized Furnaces (Jan 1, 2015 onwards) Annual fuel utilization efficiency
	Gas	Oil
Base National Standard	80%	83%	81%
AK, CO, CT, ID, IL, IN IA, KS, ME, MA, MI, MN, MO, MT, NE, NH, NJ, NY, ND, OH, OR, PA, RI, SD, UT, VT, WA, WV, WI, WY	DOE to set	DOE to set	DOE to set

For non-weatherized furnaces, by 2014, DOE would determine whether any of these standards should be amended, effective 2019. For weatherized furnaces, DOE would make a determination before 2017, effective in 2022 or later. Separate requirements could be set for new construction versus equipment installed as replacements.

State building codes could be based on specified more stringent efficiency levels than the federal standards for air conditioners, heat pumps, and furnaces as long as there was an alternative pathway to meeting the codes with equipment at the level of federal standards. The code efficiency levels would vary by region, based on the regional groupings above. They would not apply to replacement of products in an existing building unless it represented certain large capacity increases (12,000 Btu for residential air conditioners and heat pumps, 20% for others). DOE would determine if the higher levels for building codes should be amended as part of rulemakings to amend the standards.

Section 234: Energy Conservation Standards for Heat Pump Pool Heaters

This section would clarify definitions and set standards for certain swimming pool heaters, as well as some test procedures. Heat pump pool heaters manufactured after enactment of the bill would be required to have a minimum coefficient of performance of 4.0.

Section 235: Efficiency Standards for Bottle-Type Water Dispensers, Commercial Hot Food Holding Cabinets, and Portable Electric Spas

This section would set out test procedures and standards for the above mentioned products. Testing procedures for bottle-type water dispensers would be based on Energy Star requirements. Those for commercial hot food holding cabinets would be based on a standard from the American National Standards Institute (ANSI) and ASTM International  with some methodology borrowed from Energy Star. Portable electric spas’ test methods would be based on a California procedure, unless ANSI establishes a test in the future. Energy use standards are set out in this section for each of these products, all effective beginning in 2012. DOE would consider revisions to these standards before 2013. State standards for these products existing before enactment of this section, and California standards adopted before 2013, would not be preempted.

Section 236: Uniform Efficiency Descriptor for Covered Water Heaters

This section would direct DOE to establish a uniform descriptor and test methods for energy use of water heaters, storage water heaters, instantaneous water heaters, and unfired water storage tanks within 180 days of passage. The rule established would take effect one year later. It would apply, insofar as possible, to all water heating technologies. Conversion factors would be established for various measurements as well.

Section 237: Efficiency Standards for Class A External Power Supplies

This section would exempt certain types of “security of life safety alarm or surveillance systems” from “No-Load Mode” power supply standards until July 2017.

Section 238: Prohibited Acts

This section would clarify that it is illegal for representatives, distributors, or retailers to sell or distribute products that do not meet Federal efficiency standards – and not just the manufacturers themselves or private labelers. If a product is covered by a regional standard, such entities could not knowingly sell or distribute a non-compliant product to be installed in such a region.

Section 239: Outdoor Lighting

This section would amend sections 340, 342, 343, 344, and 345 of the Energy Policy and Conservation Act to create new rules, definitions, regulations, test methods, and labeling requirements for outdoor lighting. The majority of these regulations would affect outdoor luminares – defined as a luminare intended for outdoor use and suitable for wet locations, which may be shipped with or without a lamp. Certain decorative, hazardous use, and emergency use applications would be exempted.

Pole-mounted outdoor luminares would be subject to new target efficacy ratings (see table below) and have a minimum of .6 lumen maintenance. Also, beginning 3 years after enactment, each new luminaire would be required to have the ability to operate at a reduced power level, in addition to full power and off, of at least 30 percent less than the rated lamp power. One year after enactment, outdoor luminaires would be subject to new labeling requirements. This label would indicate that the luminaire conforms to the established energy efficiency standards.

Area, Roadway or Highmast luminaries (efficacy rating)
		Maximum of Uplight or Glare Rating
Backlight Rating		0 or 1	2 or 3	4 or 5
0 or 1		38	38	38
2 or 3		38	38	42
4 or 5		38	42	43

 

Decorative Posttop or Dusk-to-Dawn luminaries (efficacy rating)
		Maximum of Uplight or Glare Rating
Backlight Rating		0 or 1	2 or 3	4 or 5
0 or 1		25	25	25
2 or 3		25	25	28
4 or 5		25	28	28

Additionally, this section would establish new minimum efficiency ratings for high light output double-ended quartz halogen lamps manufactured on or after January 1st, 2016. Such lamps with a lumen value between 6,000 and 15,000 would need to meet or exceed 27 lumens per Watt (LPW). High light output double-ended quartz halogen lamps exceeding 15,000 lumens but less than 40,000 lumens would be required to have a minimum efficiency of 34 LPW.

Section 7 also would require that general purpose mercury vapor lamps not be manufactured beginning in 2016.

State energy conservation standards required by state statute enacted before 2009 and adopted before 2015 would not be preempted.

Section 240: Energy Efficiency Provisions

This section would allow DOE to prescribe more quickly consensus test procedures for measuring energy efficiency.

Both the impacts on energy prices and the effects of smart grid technologies would be included as criteria for setting efficiency standards.

DOE would also be authorized to include smart grid technologies and capabilities in product standards in several ways, after consultation with the National Institute of Standards and Technology. DOE could require smart grid capabilities or technologies in a performance standard or design requirement. DOE could also provide credit towards compliance with an efficiency standard for products incorporating smart grid technologies if they provide substantially equivalent net energy, economic, and environmental benefits.

The section would strengthen the “rebuttable presumption” minimum standard level and increase it from three to four-year simple payback.

This section would also require DOE to collect from the manufacturers product information that includes compliance, shipment, energy use, and efficiency information.
DOE would not be allowed to reject a state petition for waiver of preemption of state standards because of failure to produce information that is confidentially maintained by any manufacturer.
States would be allowed to seek an injunction to restrain some violations of the standards requirements. Injunctions would be under the jurisdiction of the U.S. district courts.
States and local governments would be required to inform the Environmental Protection Agency before they limit use of alternative refrigerants.

Section 240A: Technical Corrections

This section would make numerous clerical edits to existing law.  It would restore criteria for setting standards on commercial heating and cooling equipment.  It would correct and replace the standards in the Energy Independence and Security Act of 2007 (EISA) for electric motors and general service light bulbs.

 

Subtitle C: Building Efficiency

Part I: Building Codes

Section 241: Greater Energy Efficiency in Building Codes

This section would require the Department of Energy (DOE) to support updates to national model building energy codes at least every three years to achieve, compared to the 2006 IECC and ASHRAE Standard 90.1-2004 energy-efficient building codes, the following targets:

• 30% savings in model codes released during or after 2010 (would apply to 2012 IECC and 90.1-2010),
• 50% savings in model codes released during or after 2016 (would apply to 2018 IECC and 90.1-2016).

The end goal of DOE targets would be to put requirements on a path to achieve net-zero- energy buildings.

DOE would set targets at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective three years in advance of the target year, based on IECC & ASHRAE cycles. Prior to 2013, DOE could set a different target year if it determined the 50% target could not be met in 2016.

Upon request, DOE would provide technical assistance to model code-setting and standard development organizations in evaluating proposals, building energy analysis and design tools, building demonstrations, and design assistance and training.

Within 1 year of any revisions to IECC or ASHRAE 90.1 codes, DOE would determine whether the revisions improve energy efficiency and meet the targets. If not, DOE would (within the subsequent year) recommend changes that would sufficiently improve the codes to meet the target. If IECC or ASHRAE did not incorporate the recommended changes within the next 180 days, then based on the latest edition of the IECC or ASHRAE 90.1 codes, DOE would establish a modified code or standard that meets the targets, with the maximum energy savings that are technologically feasible and life-cycle cost effective. If IECC or ASHRAE 90.1 are not updated within three years, DOE would establish, within one year, a modified code or standard that meets the targets. Any new code issued by DOE would serve as the baseline for future codes.

DOE would allow public comment on targets, determinations, and modified codes and standards, and would publish them in the Federal Register.

DOE would support the development of voluntary advanced codes achieving savings 30% beyond national model building codes and standards, to be updated every three years, preferably developed by IECC and ASHRAE.

Within 2 years states would certify whether they have updated their codes, and that the codes meet the 2009 IECC for residential buildings and ASHRAE 90.1-2007 for commercial buildings or achieve equivalent or greater energy savings. Within 2 years of a determination by DOE that an update to a model code meets the target or of DOE’s establishment of a modified code or standard, states would be required to certify that they have updated their codes, and that the codes meet the revised model or achieve equivalent or greater energy savings. If DOE does not make a positive determination, states would have to certify within 2 years that they have updated their codes to meet or exceed any provisions of the revised model. Within 3 years of certification of a state code, each state would certify whether or not they either:

1. achieved compliance:
   • at least 90% of new and renovated building space substantially meets code r equirements, or
   • excess energy use for non-compliant buildings is not greater than 5% of energy use of all covered buildings
     (these targets may be reduced for renovations); or
2. progressed toward compliance (if the state has received no more than 8 years of adequate funding ($50 million in total federal codes funding in a year)):
   • the state is implementing a plan to achieve compliance within 8 years,
   • after 1 year has demonstrated progress, and
   • after 5 years has achieved compliance in 80% of building space or the excess energy from non-compliant buildings represents no more than 10% of total energy consumption of covered buildings.

The certification would document the rate of compliance based on independent inspections of a random sample of new and renovated buildings or an alternative method. If a state certifies that it has progressed towards compliance, it would be required to repeat the certification annually until it certified that it achieved compliance.

If a state does not meet the adoption and compliance requirements, it would have to submit a report to DOE explaining the status of the state’s efforts to reach compliance and a plan to do so, and would be out of compliance with the section. In states out of compliance, localities would be allowed to meet the certification requirements themselves.

DOE would provide technical assistance to states on demonstration of compliance, and on ways to improve and implement the codes. Incentive funding would be provided to states to implement requirements of this provision and to improve and implement building efficiency codes, including increasing and verifying compliance. Additional funding would be provided to states for implementation of plans to achieve and document a 90% compliance rate with the 2009 IECC or ASHRAE 90.1-2007 codes (or any subsequent version of the codes that have been approved by DOE). In noncompliant states, local governments that have adopted and are implementing equivalent codes would be eligible for additional funding. Up to $500,000 per state could be used to train state and local building code officials. $100 million each year would be authorized from 2009 through 2013, and such sums as necessary thereafter, for this incentive funding.

An annual report to Congress would be prepared by DOE on the status of the national codes, the status of code adoption and compliance in the States, implementation of this provision, and impacts of the program.

Part II: Weatherization Assistance for Low-Income Persons

Section 251: Weatherization Assistance for Low-Income Persons

This section would authorize to be appropriated $1.7 billion for the Weatherization Assistance Program for FY2011-FY2015

Part III: State Energy Program

Section 255: State Energy Program

This section would authorize to be appropriated $250 million for the State Energy Program for FY 2011-2015.

Part IV: State Energy Efficiency Grants Program

Section 262: State Energy Efficiency Retrofit Program

This section would require DOE to award grants for home energy efficiency retrofits to states based the States’ demonstrated performance in deploying efficiency programs. States that receive grants under this section may implement the program through the State or a third party, including an ESCO, an electric utility, a natural gas utility, among others. Of the funds appropriated for this program, states must use 45 percent on the residential program, 45 percent on the commercial program, and 10 percent on administrative and technical support.

Residential: Under this program, states may provide grants to individual homeowners for energy efficiency retrofits. The size of each grant is determined by the energy savings measured in one of two options: In the prescriptive option, the DOE is required to establish a list of energy savings measures that can save the owner of a home 10 percent or 20 percent of whole home energy consumption. The state would then award $1000 and $2000 for savings of 10 percent and 20 percent of whole home energy consumption, respectively. In the Performance-Based Option, energy savings would be determined using either home simulation software or through the HERS rating system to compare of energy use prior to and after the retrofit. The state would provide a $3000 grant for a 20 percent reduction in whole home energy consumption, with an additional $150 for each additional 1 percent reduction up to the lower of $1200 or 50 percent of the total retrofit costs.

Commercial: States may also use grants to provide incentives for retrofits to the owners of commercial buildings if the retrofits improve energy performance by at least 20 percent compared to energy consumption during the previous year. Energy savings are to be determined using a benchmarking tool established by the Administrator. The Secretary shall also provide incentives to encourage implementation of retrofits based on energy savings per square foot with more money awarded for a greater percentage of savings. Historical places are eligible for up to 120 percent of the incentives.

Section 266: Home Energy Retrofit Finance Program

This section would require the Secretary to provide grants to States to establish or expand State revolving finance funds to support financing for energy efficiency and renewable energy improvements to existing homes and residential buildings. Funds are distributed to states based on an allocation formula. Repayments of funds are required to be deposited directly back into State revolving finance funds to support additional financing for energy efficiency measures and renewable energy improvements. Retrofit programs that receive financing through this program must abide by the performance criteria and other requirements of the Home Energy Efficiency Retrofit Program.

Part V: Federal Efficiency and Renewables

Section 271: Federal Purchase Requirement

This section would outline the federal government’s renewable energy purchase requirements. Existing federal renewable energy purchase targets would be expanded from electricity to all energy consumed by the federal government. Renewable energy produced at a federal facility, on federal land, or on Indian land would be calculated separately from other renewable energy used. Furthermore, a contract made by a Federal agency to buy renewable energy would be limited to no more than 30 years. Within 90 days of enactment, DOE would have to provide a standardized renewable energy purchase agreement for all Federal agencies to acquire renewable energy.

Section 272: Competition Requirements for Task or Delivery Orders under Energy Savings Performance Contracts

This section would amend competition requirements for energy savings performance contracts (ESPC) in federal buildings. The new process would require a federal agency that wishes to issue a task or delivery order under an ESPC to notify all previously awarded contractors that the agency will solicit an expression of interest for ESPC services, and to include any energy use information available for those facilities in the solicitation. The agency must review the expressions of interest and select two or more contractors in order to analyze their qualifications and records of performance. From among those chosen for further review, the agency may select more than one contractor or one contractor to conduct site surveys and studies in order to submit a price proposal of specific energy conservation measures. The agency must then negotiate a task or delivery order for contracting services based on the energy conservation measures identified to the contractor or contractors chosen.

Section 273: Funding Flexibility

This section would allow a Federal agency to use appropriated funds and/or private financing under ESPCs or other private financing of energy savings measures to carry out a contract.

Section 274: Definition of Energy Saving

This section would redefine “energy savings” to include “installation of renewable energy systems.”

Section 275: National Energy Efficiency Improvement Goals

This section would set a goal to improve the energy productivity of the United States (in GDP/unit energy input) of at least 2.5% per year by 2012 and maintain that annual rate of improvement each year through 2030. A plan to accomplish these goals would be developed jointly by DOE, EPA, and other appropriate agencies. This plan would be subject to public input and comment, and would:

• Establish future regulatory, funding, and policy priorities to ensure compliance with the national goals;
• Include energy savings estimates for each sector; and
• Include data collection methodologies and compilations to establish baseline and energy savings data.

DOE would be required to update this plan biennially, at which time, it would report on progress made toward implementing efficiency policies and verify the energy savings that had already occurred. These updates would be submitted to Congress and be available to the public.

Section 276: Energy Sustainability and Efficiency Grants and Loans for Institutions

This section would allow grants and loans for non-profit health care facilities and hospitals, increase the maximum amount of loans provided annually, and extend the program through 2015.

Section 277: Federal Implementation Strategy for Energy-Efficient Information and Communication Technologies

This section would require each federal agency, within one year of enactment, to collaborate with the Office of Management and Budget (OMB) to create an implementation strategy (including best practices and measurement and verification) for the maintenance, purchase, and use of energy-efficient and energy-reducing information and communications technologies and practices. The agency strategies must consider advanced metering infrastructure, efficient data center strategies, computer power management, applications modernization and rationalization, building systems energy efficiency, and telework, as well as other information and communications technologies and infrastructure. The strategies must also ensure that the agency is eligible to realize the savings and rewards of increased efficiency, and must incorporate existing standards, specifications, performance metrics, and best management practices.

Within 180 days of enactment, OMB would be required to establish performance goals for evaluating agencies’ efforts to improve their information and communications technology systems. These goals must measure IT costs over 3 to 5 years and account for all costs, including energy costs. Agencies would report their progress to the OMB, which would include a description of agencies’ efforts in its annual report and energy scorecard.

Section 278: Incentives for Federal Agencies to Participate in Energy Efficient Programs

This section would allow and encourage Federal agencies to participate in energy efficient programs offered not only by utilities, as currently allowed, but by state agencies or third party agencies implementing such programs on behalf of utilities

Part VI: Energy Efficiency Information on Homes and Buildings

Section 281: Building energy performance information program

This section would direct the EPA, in consultation with DOE, to establish a voluntary building energy performance information program to provide information on relative energy performance (primary energy consumption per square foot or some other measure of energy consumption intensity as determined by DOE for a given building type), and to increase public awareness of the importance of building energy efficiency and energy performance through public education, including establishment of a business and consumer education program.

Not later than 90 days after enactment, DOE would be required to submit to Congress a report listing the building types for which sufficient data already exist to set a baseline and those for which additional data are needed, with a subsequent report required no later than every two years thereafter. DOE would also be required to improve the Commercial Buildings Energy Consumption Survey (CBECS) sufficiently to allow DOE to characterize achieved performance of existing commercial buildings for the types currently covered by CBECS (covered buildings being those for which statistically significant energy performance data exist to serve as the basis of measurement protocols and certifications). DOE would also strive to use CBECS to cover additional building types, in order for CBECS to cover at least 85 percent of commercial building energy use within 5 years of enactment.

While conducting the Residential Energy Consumption Survey (RECS), DOE would be authorized to evaluate whether the data in the RECS is appropriate to develop achieved performance measurement formats for residential building energy within 5 years of enactment.

Within 2 years of identifying a covered building type, EPA would be required to establish methods to measure achieved performance and designed performance, and procedures for collecting and updating information. EPA would also be authorized to establish one or more formats that would display achieved performance and designed performance, would be building type-specific or would display other relevant information related to building energy performance; and would display both achieved and designed building performance, unless there was insufficient data, or it was not practicable or cost effective. EPA would review these methods at least every five years. Demonstration projects would also be required to evaluate model certificate specifications and measurements proposed by State and local agencies, utilities or organizations.

Should a State or local government request it, DOE would be authorized to help develop an equivalent state or local building information program; provide technical assistance and information; and if the program qualified as a model program – one which would make building energy performance information available to the public, using the information formats defined by EPA – provide a grant for initial program administration. DOE would attempt to encourage state and local governments to use the program, and would report to Congress its level of success within 3 years of enactment.

Within 3 years of enactment, each Federal agency owning or operating covered buildings would be required to implement the building energy information program in 30 percent of covered buildings built before the establishment of the program, and in 90 percent of covered buildings built subsequently. Within a year of enactment, Likewise, any newly constructed state, county or local government covered building that received Federal financial assistance would be required to use the certificate. DOE would be required to develop guidelines on implementation, and extend and adapt them to State and local governments, upon request.

EPA would be authorized to use the energy performance information developed to establish a voluntary Energy Star program recognizing high efficiency retrofits of existing commercial and residential buildings.

Section 282: Evaluation, measurement, and verification of energy savings

This section would require that DOE, within 2 years of enactment, promulgate uniform rules, after consultation with States, utilities, and other stakeholders, to document energy savings and avoided greenhouse gas (GHG) emissions of energy efficiency programs and projects that receive funding from Federal, State, or local governments or public utilities; require specific levels of energy reductions; and are eligible for allowances or allowance proceeds based on energy or GHG emissions reductions under climate change regulations.

DOE would be required to ensure, to the maximum extent practicable, that the rules are enforceable; give reasonable assurance that the energy and GHG savings are verifiable and additional; are complete and transparent; balance risk management, certainty of estimated impacts and implementation costs; and provide sufficient direction on methodologies and assumptions to ensure reasonable uniformity across States and other entities, and consistency in results. The rules would be harmonized with existing domestic and international protocols wherever practicable.

Part VII – Residential High Performance Zero-Net-Energy Buildings Initiative

Section 291: Residential High Performance Zero-Net-Energy Buildings Initiative

This section would establish the “Residential High-Performance Zero-Net-Energy Buildings Initiative” to reduce the quantity of energy consumed and increase the renewable energy generated in residential buildings that are four stories or less. Buildings would reduce energy needs through energy efficiency gains and renewable technologies, without producing net emissions of greenhouse gases in space heating, cooling, domestic water heating, lighting, and appliances. The Director of Residential High-Performance Zero-Net-Energy Buildings would form a High-Performance Residential Green Building Partnership Consortium to assist in developing and implementing the Initiative during the 5 year period beginning on the date of enactment.

The Initiative would promote technologies and strategies that facilitate the design and construction of Zero-Net-Energy buildings (including identification and validation) by 2015, with the goal of enabling residential buildings constructed on or after 2020 to be cost-effective Zero-Net-Energy buildings. This would be achieved through pilot programs and demonstration projects, leveraging existing resources to conduct research and development on building science, as well as providing technical assistance and trainings to encourage the widespread adoption of technologies, practices, and policies. Furthermore, this initiative would support State and local governments in developing minimum performance standards in building codes, ensure energy-efficiency and renewable technology investments are made to overcome split-incentives barriers, and develop public education materials to inform the public on the benefits and cost-effectiveness of zero-net-energy buildings.

Funding is authorized to be appropriated as follows:

• $40 million for fiscal year 2010
• $60 million for fiscal years 2011 and 2012
• $100 million for each of fiscal years 2013 through 2020

Title IV: Energy Innovation and Workforce Development

Subtitle A: Funding

Section 401: Authorization of Appropriations for Energy Research, Development, Demonstration, and Commercial Application Activities

Fiscal Year	Authorization
2010	$1.974 billion
2011	$2.388 billion
2012	$2.821 billion
2013	$3.258 billion

This section would authorize appropriations to DOE according to the schedule on the right, for energy efficiency and conservation research, development, demonstration, (RD&D) and commercial application activities, including those authorized under EPAct 2005; distributed energy and electric energy system activities, including those authorized by EPAct 2005; and renewable energy RD&D and commercial.

Subtitle B: Improvements to Existing Energy Research and Development Programs

Section 421: Advanced Research Projects Agency-Energy

This section would authorize ARPA-E to initiate and execute grants, contracts, cooperative agreements, and other transactions separate from DOE. Would require the Director of ARPA-E to provide to the relevant authorizing and appropriations committees of Congress a roadmap describing the strategic vision that ARPA-E will use to guide its investment choices over the following 3 fiscal years by October 1, 2009 and October 1, 2012 (amended from 10/1/08 and 10/1/11). Would require DOE to allow the National Academy of Sciences to evaluate ARPA-E’s performance 7 years after it begins operation. And would authorize such funds as needed through 2020 (extension from 2010).

Section 423: Lightweight Materials Research and Development

This section would increase authorized appropriations to $100 million per year through FY 2013 for the Lightweight Materials R&D program established by EISA, which would determine ways to reduce the weight of motor vehicles to increase fuel efficiency without compromising passenger safety, through the development of new materials and material processes or through reducing the cost of lightweight materials or material processing.

Subtitle C: Energy Workforce Development

Section 439: Sustainable Energy Training Program for Community Colleges

This section would authorize DOE, working with DOL, to issue grants to community colleges to provide workforce training and education in sustainable energy industries and practices, including for energy efficiency construction, retrofitting and design; water and energy conservation; and recycling and waste reduction. At least one-half of the authorized funds would be required to be awarded to community colleges with existing certificate or degree-granting programs in these fields. $100 million would be appropriated annually for these grants for FY 2010-2015.

Title V: Energy Markets

Section 502: Working Group on Energy Markets

This section would establish a ‘Working Group on Energy Markets’ to investigate the effects of increased financial investment in energy commodities on energy prices and energy security. The Working Group could recommend to Congress and the President regulations to prevent excessive speculation in energy commodity markets. The Working Group would also track developments in international energy markets and investigate implications for energy security. The Working Group would be composed of the secretaries and chairmen of:

• Department of Energy
• Department of the Treasury
• Federal Energy Regulatory Commission
• Federal Trade Commission
• Securities and Exchange Commission
• Commodity Futures Trading Commission
• Energy Information Administration

Section 503: Study of Regulatory Framework for Energy Markets

This section would direct the Working Group on Energy Markets to prepare a report, primarily regarding speculation in crude oil markets, but also on energy markets broadly.

Section 504: Metadata Formats for Energy Prices

This section would expand the DOE’s existing Tariff Analysis Project, which uses an online database to help consumers compare tariff options and to help the DOE calculate savings from its Appliance Efficiency Standards program. The Tariff Analysis Project manages a database of rate structure information and a corresponding web interface to track up-to-date electricity prices. This section directs the DOE to redesign the web interface and to establish a more comprehensive and current data management protocol.

Title VI: Policy Studies and Reports

Section 603: Better energy strategy for tomorrow

This section would amend the current requirement of the President of the United State’s National Energy Policy Plan by requiring the participation and cooperation of all relevant federal agencies in the development of the Plan required by the Department of Energy Organization Act, and would change the existing requirement of biannual reports by requiring the Plan to be issued no later than February 1, 2010 and quadrennially thereafter. The scope of the Plan would be changed to replace “energy efficiency” wherever it previously referenced “conservation,” and would be amended to also consider the reduction, avoidance or sequestration of greenhouse gas emissions. The National Academy of Sciences would also contribute to the development, review, and summary of the review of the Plan.

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