Policy Summary

07/26/11

The Energy Savings and Industrial Competitiveness Act of 2011: Section-by-Section Summary

 Full Bill Text

The following is a summary of the Energy Savings & Industrial Competitiveness Act of 2011 (ESICA, S. 1000), which was introduced on May 12, 2011 by Senator Jeanne Shaheen (D-NH) and Senator Rob Portman (R-OH), and reported out by the Senate Energy and Natural Resources Committee on July 14, 2011 by a vote of 18-3. This summary is based on the text as reported by the committee.

Note the appliance standards provisions that were Title II of the bill were removed because the committee had already reported out identical legislation in the Implementation of National Consensus Appliance Agreements Act of 2011 (INCAAA, S. 398), on May 18, 2011. A summary of those provisions can be found here.

 

Title I: Buildings

Subtitle A: Building Energy Codes

Section 101: Greater Energy Efficiency in Building Codes

This section would amend the Energy Conservation and Production Act (ECPA) to direct the Department of Energy (DOE) to support development of national model building energy codes, state, Indian tribe and local adoption of the codes, and full compliance with the codes.

DOE would support updates to national model building energy codes for residential and commercial buildings from baselines of the 2009 International Energy Conservation Code (IECC) and ASHRAE Standard 90.1-2010 respectively.  DOE would collaborate with State, Indian tribes, local governments and codes/standards developers to support aggregate energy savings targets for the model codes for specific years to help achieve those goals. The targets would be set at the maximum level of energy efficiency that is technologically feasible and life-cycle cost effective, taking into account economic considerations and promoting the achievement of high-performance buildings through high-performance energy efficiency.

DOE would be directed to provide technical assistance to model code-setting and standard development organizations, and to submit amendment proposals sufficient to enable the model code or standard to meet its targets.

Within one year of any revisions to the IECC or ASHRAE Standard 90.1, DOE would be directed to determine whether the revisions improve energy efficiency and meet the established targets (if any). If so, then the revised IECC or ASHRAE Standard 90.1 would be established as the relevant national model building energy code.

If, in a preliminary determination within 90 days of revisions, the revisions appear not to meet the targets, DOE would recommend changes that would sufficiently improve the codes to meet the target, and IECC or ASHRAE would have 180 days to incorporate changes to meet the targets.  If the revision still did not meet the target, then DOE would establish a modified national model building code that does, based on the latest edition of the IECC or ASHRAE Standard 90.1 (but protecting their intellectual property rights).

DOE would make its analysis methodology public, and would allow public comment on targets, determinations, and modified codes and standards.

Within 2 years of the establishment of a national model building energy code, states would be required to certify whether they have updated their codes, and whether the codes meet the revised model or achieve equivalent or greater energy savings.

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 building space covered by the code substantially meets code requirements, or excess energy use for non-compliant buildings is not greater than 5% of energy use of all covered buildings; or
  2. Made significant progress: the state has developed and is implementing a plan for achieving compliance within 8 years of enactment, and is meeting compliance targets under the plan.

If a state does not meet the adoption and compliance certification requirements, it would be required to submit a report to DOE explaining the status of the state’s efforts to reach compliance and a plan to do so. In states for which DOE has not accepted adoption and compliance certifications, localities would be allowed to meet the certification requirements themselves. Acceptance of state certifications may be required by DOE as a criterion for grants or other support for code adoption and compliance activities under this section. However, no model building code or standard established under this section shall be binding on a state, local government or Indian tribe as a matter of Federal law.

DOE would be directed to provide technical assistance and incentive funding to states on building energy codes. Additional funding to improve compliance would be provided by DOE to states or local governments with certifications accepted by DOE. Up to $750,000 per state could be used to train state and local building code officials.

DOE would be directed to provide technical and financial support for the development of stretch codes and advanced standards as an option for adoption as a building code by State, local or tribal governments for use as guidelines for energy-efficient building design. Such codes and standards should achieve substantial savings compared to national model building energy codes and should meet any targets established under this bill three to six years in advance.

This section would authorize to be appropriated $200 million, to remain available until expended.

 

Subtitle B: Worker Training and Capacity Building

Section 111: Building Training and Assessment Centers

Incorporated into Title X of the Energy Independence and Security Act of 2007, this section would direct DOE to establish Building Training and Assessment Centers at institutions of higher learning, modeled after DOE’s Industrial Assessment Centers (IACs).  These centers would identify and promote opportunities, concepts, and technologies for enhancing building energy and environmental performance; train engineers, architects, building scientists, building permitting and enforcement officials, and technicians; assist other institutions to train building technicians; promote research and development in building clean energy technologies and distributed generation; and coordinate services with technical training centers, community colleges, and other relevant offices and institutions. DOE is directed to avoid duplication coordinate, and collocate Building Training and Assessment Centers, where practical, with IACs.

 

Title II: Building Efficiency Finance       

Section 201: Building Efficiency Retrofit Loan Credit Support Program

This section, from Senator Shaheen’s Recovery Through Building Renovation Act of 2010 (S. 3780), would add to DOE’s Title XVII loan guarantee program a “Building Retrofit Financing Program” that would provide credit guarantees to reduce financing risk for commercial and institutional buildings’ energy efficiency projects Eligible buildings would include commercial, industrial, municipal, university, multifamily residential, school, or hospital facilities. The program would prioritize maximizing energy savings for the available funding, accounting for geographic distribution across the country.  DOE would be directed to set minimum energy savings requirements and credit support guidelines for eligible projects after a public comment period. DOE will consult with the Office of Management and Budget as to lien priority requirements, which should protect prior lien positions and limit DOE’s exposure to financial risk in the event of default. Credit support could not exceed 90% of the credit liability and could not be greater than $10 million for a single project, but could support an aggregated portfolio of projects in different locations.

The range of financing mechanisms that could be supported by this program would be very broad, including:

  • Loans;
  • Power purchase agreements;
  • Energy service agreements (e.g., energy service performance contracts);
  • Property-assessed clean energy bonds or similar tax assessment-based programs;
  • Aggregate on-meter agreements;
  • Others deemed appropriate by the DOE.

$400 million would be authorized to be appropriated for the period of fiscal years 2012 through 2021, and would remain available until expended.

 

Title III: Industrial Efficiency and Competitiveness

Subtitle A: Manufacturing Energy Efficiency

Section 301: State Partnership Industrial Energy Efficiency Revolving Loans Program

This section would direct DOE to provide grants to eligible lenders to pay part of the cost of revolving loan programs for commercial and industrial manufacturers to implement commercially available technologies and processes for reducing their energy intensity and improving national industrial competitiveness. Eligible lenders must be community and economic development lenders that lead a partnership that includes at least a state government agency and a private financial institution or other provider of capital. Federal funds for an eligible lender will be capped at $100,000,000 for any fiscal year, and must be cost-matched by non-Federal funds at least dollar-for-dollar. Eligible projects will be designed to accelerate the implementation of industrial and commercial applications of technologies (including software) and processes to improve energy and water efficiency, power factor or load management, and to enhance industrial competitiveness. Total authorization for the section would be $400,000,000 for fiscal years 2012 through 2021 (after needed technical correction).

 

Section 302: Coordination of Research and Development of Energy Efficient Technologies for Industry

This section would establish collaborative research and development partnerships between the DOE Industrial Technologies Program and other offices within the Department to promote early stage energy efficiency technology development; support applied research and development, demonstration and commercialization of innovative manufacturing processes for improving efficiency (including improvements in efficient use of water), reducing emissions and waste, and improving industrial cost-competitiveness; and apply the knowledge and expertise of the Industrial Technologies Program to help achieve program goals of other offices.

 

Section 303: Energy Efficient Technologies Assessment

This section would require DOE to undertake assessments of commercially available, cost -competitive energy efficiency technologies that are not widely implemented within the United States for energy-intensive industries including steel, aluminum, forest products, food processing, metal casting, glass, chemical, petroleum refining, cement, industrial gases, and information and communication technologies. Within one year of enactment, the Department would publish an inventory of technologies assessed describing for each technology potential cost, energy, and greenhouse gas savings and potential savings if implemented throughout industry in the United States. It also would report on total cost, energy and greenhouse gas savings for each industry if state-of-the-art, cost-competitive, commercial energy efficiency technologies were adopted. Further, the report would compare technology adoption rates and supporting policy structures with Japan, the European Union, and other appropriate countries. The report would also provide recommendations for job creation in the United States through private-sector collaboration of energy service providers and energy-intensive industries. Finally, the report would also assess energy savings possible from increased use of recycled materials in energy-intensive processes.

 

Section 304: Future of Industry Program

This section would direct the DOE Industrial Technologies Program, in collaboration with industry, to establish a road map process for conducting industry-specific studies on the intensity of energy use, greenhouse gas emissions, and operating costs; developing targets for improvements in energy efficiency, sustainability and resilience; and creating public-private plans to achieve road map goals.

The section also would establish Centers of Excellence at up to ten of the highest-performing existing industrial research and assessment centers (IACs). Each Center of Excellence would coordinate with and advise other IACs within its region to enhance technical assistance to manufacturing industries. The IACs would coordinate and partner with the Manufacturing Extension Partnership Centers of the National Institute of Standards and Technology, the DOE Building Technologies Program, and the DOE national laboratories, as well as partner with energy service providers. The IACs would promote sustainable manufacturing practices for small- and medium-sized manufacturers and identify greenhouse gas reduction opportunities. They would perform outreach to small- and medium-sized manufacturers and technology providers, and have an employee to coordinate with other federal and state efforts, utilities, energy service providers, regional energy efficiency organizations, and other regional centers. Subject to availability, each Center of Excellence would receive funding of no less than $500,000 for each fiscal year. The section would also call on DOE to expand the network of industrial research and assessment centers at institutions of higher learning, and authorize up to 50% federal cost-share for student interns to help implement recommendations of IACs.

This section would also direct the Small Business Administration to expedite consideration of applications from eligible small businesses to implement recommendations of the IACs.

 

Section 305: Sustainable Manufacturing Initiative

This section would establish a sustainable manufacturing initiative under the DOE Industrial Technologies Program to provide onsite technical assessments to manufacturers. The assessments would identify opportunities to maximize energy efficiency, prevent pollution and minimize waste, reduce the use of water in manufacturing processes, and conserve natural resources. The initiative would operate in coordination with the private sector and appropriate agencies, including the National Institute of Standards and Technology, to accelerate adoption of technologies or processes that improve energy efficiency. In addition, this section would create a joint industry-government partnership program as part of the DOE Industrial Technologies Program to research, develop, and demonstrate new sustainable manufacturing and industrial technologies and processes. Total authorization for the section would be $10,000,000 for the period of fiscal years 2012 through 2021.

 

Section 306: Study of Advanced Energy Technology Manufacturing Capabilities in the United States

This section would task the National Academy of Sciences to conduct a study of the development of advanced manufacturing capabilities for various energy technologies. The study would analyze the history, current trends, and opportunities for improvements in supply chains. The study would analyze for each technology or manufacturing sector which parts of the supply chain are most critical for U.S. manufacturing competitiveness, assess emerging energy technologies, and provide recommendations on leveraging energy efficiency and renewable energy user facilities.

 

Section 307: Industrial Technologies Steering Committee

This section would establish an advisory steering committee that includes national trade associations who represent energy-intensive industries or energy service providers to provide recommendations on the DOE Industrial Technologies Program.

 

Section 308: Authorization of Appropriations

This section would authorize appropriations necessary to carry out recommendations from the advisory steering committee created in the previous section.

 

Subtitle B: Supply Star

Section 311: Supply Star

This section, from Sen. Bingaman’s 2010 S. 3396, would establish a Supply Star program within DOE to identify and promote practices, recognize companies, and recognize products that use highly efficient supply chains in a manner that conserves energy, water and other resources. In addition to promoting existing efficient supply chain practices, this section would collect and disseminate data on supply chain energy resource consumption, develop and disseminate metrics for evaluating supply chain energy resource use, and develop sector level guidance for improving supply chain efficiency. DOE would also be directed to work with industry and small business to improve supply chain efficiency through sharing best practices, providing benchmarking opportunities, and supporting professional training. The Supply Star program would coordinate efforts with the Energy Star program. Total authorization for the section would be $10,000,000 for the period of fiscal years 2012 through 2021.

 

Subtitle C: Electric Motor Rebate Program

Section 321: Energy Saving Motor Control Rebate Program

This section would direct DOE to create an incentive for the purchase of new constant speed electric motor controls that reduce a motor’s energy use by at least 5%. The rebate would be worth $25 per horsepower of the motor. $5 million would be authorized to be appropriated for this provision for each of fiscal years 2012 and 2013, to remain available until expended.

 

Subtitle D: Transformer Rebate Program

Section 331: Energy Efficient Transformer Rebate Program

This section would direct DOE to create an incentive for the purchase of new energy efficient transformers by owners of commercial or multifamily residential buildings. Qualified transformers must meet or exceed the National Electrical Manufacturers Association (NEMA) Premium Efficiency designation, having 30 percent or fewer losses than NEMA’s 2002 standard for a transformer with the same phases and capacity. The rebate would be worth:

  • For 3-phase transformers:
    • If capacity is not greater than 10kVA, $15 per kVA;
    • If capacity is greater or equal to 100kVA, $5 per kVA;
    • If capacity is between 10kVA and 100kVA, a scaled amount between $15 and $5 per kVA;
  • For single-phase transformers, 75% of the rebate for a 3-phase transformer of same capacity.

$5 million would be authorized to be appropriated for this provision for each of fiscal years 2012 and 2013, to remain available until expended.

 

Title IV: Federal Agency Energy Efficiency

Section 401: Adoption of Personal Computer Power Savings Techniques by Federal Agencies

This section would require Federal agencies to develop a plan for using advanced tools that promote energy savings such as computer hardware, energy efficiency software, and power management tools, based on guidance from the Department of Energy. Agencies would submit a report to DOE containing both the plan for implementation and estimated energy and financial savings from the use of the advanced tools.

 

Section 402: Availability of Funds for Design Updates

This section would allow the General Services Administration (GSA), for any project for which congressional approval has been received and the design has been completed but for which construction has not begun, to use appropriated funding to update the building’s design to meet energy efficiency and other standards for new federal buildings. Funds used for this purpose could not exceed 125 percent of the estimated energy or other cost savings resulting from the design changes.

 

Section 403: Best Practices for Advanced Metering

This section would require federal agencies to create an implementation plan, updated annually, for how each agency will achieve metering requirements under the National Energy Conservation Policy Act (NECPA), including designating personnel responsible for achieving those requirements and both demonstrating and documenting instances when the use of advanced metering devices is not practicable. It would also require DOE to develop and issue an annual best-practices report on advanced metering of energy use in federal facilities in collaboration with the Department of Defense and the General Services Administration. The report would include summaries and analysis of agency reporting; recommendations on standard requirements or guidelines for automated energy management systems, including establishing standards for communications and security and means for facilitating continuous commissioning and evidence-based maintenance of buildings and building systems; and analyses of metering and monitoring pilot projects in Federal buildings and examples of existing techniques used in the private and non-Federal sectors.

 

Section 404: Federal Energy Management and Data Collection Standard

This section would, for facilities covered under section 543(f) of NECPA, direct energy managers to use a web-based tracking system to publish energy and water consumption data on an individual facility basis, in addition to existing requirements for tracking compliance with energy and water audit and savings measure implementation requirements, cost and savings of the measures, and benchmarking of energy use.

 

Section 405: Electric Vehicle Charging Infrastructure

This section would amend NECPA to make measures to support the use of electric vehicles or the fueling or charging infrastructure necessary for electric vehicles eligible for Energy Savings Performance Contracts (ESPCs).

 

Section 406: Federal Purchase Requirement

This section would amend the federal renewable energy consumption requirements in the Energy Policy Act of 2005 to include thermal as well as electric renewable energy consumed. Further, the section would require calculation of renewable energy production at federal facilities, on federal land, and on Indian lands and allow such production to count toward compliance with the federal renewable energy consumption requirements.

 

Section 407: Study on Federal Data Center Consolidation

This section would require DOE to coordinate with program and facility managers to conduct a feasibility study on government-wide data centers with the intention of closing a minimum of 800 Federal data centers by 2015, and would require DOE to provide a report to Congress on the results of the study.

 

Title V: Miscellaneous

Section 501: Offsets

This section would reduce levels of funding authorized in the Energy Independence and Security Act of 2007 for:

  • The Zero-Net Energy Commercial Buildings Initiative by $50 million for each fiscal year 2011 and 2012 and $100 million for fiscal year 2013;
  • Energy sustainability and efficiency grants for institutions by $150 million for each fiscal year 2011 and 2012;
  • Energy sustainability and efficiency loans for institutions by $400 million for each fiscal year 2011 and 2012 and by $75 million for fiscal year 2013;
  • Waste Energy Recovery Incentive Program by $100 million for each fiscal year 2011 and 2012; and
  • Energy Intensive Industries Program by $100 million for each fiscal year 2011 and 2012.

 

Section 502: Budgetary Effects

The budgetary effects of the bill under PAYGO regulations shall be determined by the latest statement on the bill.

 

Section 503: Advance Appropriations Required

This section specifies that authorizations for appropriations shall be applicable only insofar as such sums are actually appropriated.

 

 

July 26, 2011

PDF Version 

The Alliance to Save Energy is a coalition of prominent business, government, environmental and consumer leaders who promote the efficient use of energy worldwide to benefit consumers, the environment, the economy, and national security. For more information please contact Alliance policy staff at (202)857-0666 or info@ase.org.

Copyright 2011 The Alliance to Save Energy
All rights reserved